Fannie Mae Overhauls Mortgage System in Landshake Policy Shift

A seismic change is coming to the U.S. mortgage landscape as government-sponsored enterprise Fannie Mae prepares to eliminate its longstanding minimum credit score requirement. Effective November 16, the fixed 620-point threshold for loan applications processed through its Desktop Underwriter system will be removed entirely, marking one of the most significant lending policy revisions in recent years.

Rather than maintaining a rigid credit score cutoff, Fannie Mae will implement a comprehensive risk evaluation conducted by its automated underwriting system. The Federal Housing Finance Agency has clarified that this transition represents a methodological shift in risk assessment rather than a relaxation of credit standards. Despite this official position, the practical effect is expected to Read more...