Nov 8 • General
Fannie Mae just opened the foreclosure floodgates.
Effective November 16th, the 620 credit score minimum is gone.
And yeah... I've seen this movie before.
Here's what happens next:
→ Bunch of buyers who "couldn't qualify" suddenly can
→ They make payments for 8-10 months
→ Then we get a wave of foreclosures
Keep in mind Fannie Mae delinquencies are already sitting at 12.1%.
BEFORE this change.
Here's what I changed in my underwriting immediately:
Cash reserves? I bumped my minimum from 6 months to 10.
Exit strategy? I now have two backup buyers mapped out before I close.
Tenant screening? Credit score just became the baseline, not the decision point.
Because that credit floor used to do the heavy lifting. Now your exit strategy and reserves need to carry that weight instead.
History doesn't repeat but it sure rhymes.
How are you adjusting your underwriting & strategy now instead of learning this lesson the expensive way?
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Fannie Mae just opened the foreclosure floodgates.
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