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Auto Lease Payments – Mortgage Underwriting Tip

BARNEY FRANK: official portrait of a smiling F...
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In the old days, you know before Barney Frank told us on the O’Reilly Factor that mortgages were a safe bet and Fannie Mae was solid (very tounge in cheek) if you had an auto lease and there were fewer than 10 remaining payments remaining in the lease and if you were applying for a conventional mortgage loans lenders were not required to count the lease payment against your total debt to income ratio as a factor to making a loan.

An exception was unless the lease payment consumed so much of your income that it would prevent you from being abler to make your new mortgage payment, however this may differ if you are renting and have a lease agreement with your landlord.

Three years into the Great Recession we know that Barney Frank was wither lying or is just plain stupid because since shortly after he made that statement to Bill both Fannie Mae and Freddie Mac have been in a quasi state of bankruptcy no mans land we call receivership of the US Federal Government. Its stock prices has plummeted from it’s all time Continue reading Auto Lease Payments – Mortgage Underwriting Tip