I just heard about these coming into play on all loans, and have already seen them implemented on some. FannieMae’s ultimate goal is to do whatever it can to reduce or eliminate mortgage fraud. Two things that are now expected on every loan are:
1. Confirm that there are no undisclosed liabilities. Generally, whatever is on your credit report in terms of monthly payments on any credit card debt, student loans or car loans will be counted against you in your qualifying ratio. This will go one step further and any inquiries on your credit will either have to be explained, or the lender will put a call into the creditor to determine if any new financial relationship has been established. (Any time your credit gets pulled, it results in an inquiry on your credit report and gets listed).
2. Your name will be run through HUD’s Limited Denial of Participation List and GSA’s Excluded Parties List. These federal lists exist as “risk categories” – if you ever committed fraud, gross negligence or have been determined to lack general business integrity, your name will be on the list. We definitely want to see “no match found” when running your name; otherwise, you will be denied a loan.
For your reference, here are the lists your name will now get run through:
https://www5.hud.gov/ecpcis/main/ECPCIS_List.jsp
https://www.epls.gov/epls/search.do?multiName=true
