"This is an interesting part of the proposal that still hasn't been resolved. Namely, the other characteristics that borrowers will need to qualify for these new conforming mortgages. For example, if credit-score requirements don't change, many borrowers will not be eligible for the new pricing. California underwriting has been different than in the rest of the country. Housing is more expensive here, so people have been more likely to use more of their income on housing. It's possible there will be changes, such as allowing flexibility on income requirements", said Raphael Bostic, associate director of the Lusk Center for Real Estate at USC.
