Changes in Mortgage Underwriting May Increase Real Estate Short Sales

New mortgage underwriting guidelines for banks and credit unions may cause a sharp rise in real estate short sales. The exotic mortgages just got a lot harder to qualify for,so those that are currently in these types of mortgages who have not refinance may be face a dire situation in the future. Can't sell, can't refinance?

Here is the new mortgage underwriting guidelines released that will force banks and credit unions to now qualify people for mortgages at the fully indexed rate vs. the low start rate. This has significant impact as to the maximum mortgage amount they qualify for as noted in this mortgage info blog post.