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March 28, 2008
Fannie Mae Tightens Loan Restrictions
To minimize credit losses, Fannie Mae recently made policy changes that could make it more difficult for borrowers in markets experiencing home-price declines to refinance into less expensive loans. The changes prohibit borrowers from obtaining cash-out refinancings to repay second mortgages, allowing them to use equity only to repay first mortgages, prepaid interest or closing costs.
Posted by S. Germain at March 28, 2008 07:48 AM