Fannie boosts DTI ratio in new Desktop Underwriter update


WASHINGTON – Fannie Mae is increasing the maximum debt-to-income ratio it will allow on purchased loans to 50% from 45% on single-family loans when it rolls out its latest version of Desktop Underwriter on July 29.

The move comes six years after Freddie Mac began buying mortgages with debt-to-income ratios of 50% and was quickly hailed by industry representatives as a way to expand access to credit.

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