It just goes to show you that change is inevitable. Cyd West from First Community Mortgage is always keeping me on my toes. This message is from her:

Shine Team,

In my efforts to keep everyone apprised of the changes that are taking place in the market, I received a memo this morning that states that FHA and VA loans will soon be priced based on credit scores. This is huge! Historically, VA and FHA loans have not been sensitive to credit scores - contrary to what some subprime lenders have said in the past to get higher rates. But, it's changing... I suspect it will be across the board within 90 to 120 days.

Advice to agents out there with VA and FHA loans in processing with less than great credit scores (<680)..... LOCK 'EM IF YOU'VE GOT 'EM! Make sure your customers have locked their rates with their lenders. Once they're locked, the lender cannot come back and change the pricing. This is the time to get 90-120 day closings locked with a fee, if necessary. Get your lock commitments in WRITING... no verbal stuff right now. Make sure you close before the commitment expires... extensions will be non-existent. This will be extremely important on new construction. Make sure your builders know this is coming – they must complete on time!

Sounds like good advice!

Thanks,
Jean