Part of my job as a California Mortgage Broker is to stay on top of Lender Guidelines. Guidelines are those internal rules, if you will, that underwriters use to see if a submitted loan file will be approved.

All of us in the industry have seen a gradual tightening of the guidelines, making it tougher for individual borrowers to qualify. Here are the latest guideline updates that Fannie and Freddie are considering to abide by.

New Underwriting Guidelines effective 01/01/2011 - -

* All Borrowers' Birth Certificates will be required with Pictures taken in the hospital with medical staff. Birth certificate with a live home delivery will not be eligible for first time home buyers.

* Marriage certificate with bridal dress will be required if both husband and wife are required to qualify for the loan.

* GFE will not require signature but will require blood sampling from a recognized institution within three days of application.

* DNA test will be performed at closing to avoid any Non-ARMs length transaction. Loan funding will be contingent upon satisfactory receipt of DNA results.

* Verification of deposit will be acceptable only if Bank representative is present at the closing.

* Copy of Pay stubs and W2s will only be acceptable through IRS and only with a wax sealed envelope mailed directly to the lender.

* 7 Witnesses from the neighborhood will be required as proof of primary residence in case Borrower owns more than 1 property.

* All appraisers will be required to use Mask and ear plugs at the time of inspection to avoid any personal influence by the Borrower for the appraised value.

* In order to correctly calculate DTI and the true house running ratio, a list of grocery items, monthly usage and brand names will be required with receipts and projected 12 months consumption chart.

* Closing will not occur without loan officer present at settlement and Loan officer picture will be taken at the closing in a Mug shot format with loan number. Picture should meet standard guideline of 2 X 2 inch in color format with one facing and one side view.

* Loan officer picture will be attached to the Deed and Note and will be made available for general public and security agencies in case Borrower defaults.

Please note ; the above may be a slight exaggeration - so to get the real story, please feel free to contact me at 530-205-9145, and I will help you wade through the lending environment we all find ourselves in today.