Fannie Mae makes an appearance at the Real Estate Finance Forum

It has been nearly four years since a representative from Fannie Mae has visited SAR’s Real Estate Finance Forum. Collette Porter a Senior Account Manager for the Northern California region visited from Pasadena to highlight some of the ways Fannie Mae is supporting the current market. Responding to the level of REO properties on the market, Fannie Mae has launched the website www.HomePath.com as a search portal for REO properties. And in response to the recent federal Making Home Affordable Program, Fannie Mae has the website www.fanniemae.com/loanlookup so that individual property owners can determine if Fannie Mae owns the loan for a particular address.

Fannie Mae is working to refinance existing mortgages with LTV limits of 105% and limited cash out opportunities. There are some challenges refinancing some loans. The willingness of some second and third lien holders to resubordinate and mortgage insurance were mentioned. However, Collette Porter did emphasize Fannie Mae’s desire to work with a broad array of lenders and loan originators including small local shops in helping to avoid these issues.

Confused by the Fannie Mae loan limits? Me too and after sitting in on the Real Estate Finance Forum this morning, I still am! I remember something about the higher of the lower temporary higher limit or….  wait, here it is right on Fannie Mae’s website: http://www.fhfa.gov/GetFile.aspx?FileID=135 

In other Real Estate Finance developments, the majority of the Home Loan Counseling Center’s business these days is default avoidance counseling. Most of the their education offerings are on the weekend with the next class on May 23.

Bill McKnight gave an update on HVCC and reminded folks that personal appraisals (divorce, trust planning, property tax appeals…) do not fall under the HVCC guidelines. Only Fannie and Freddie backed purchases or refis. Remember, HVCC went into effect May 1, 2009.

The Sacramento Housing and Redevelopment Agency has lots of MCC money, some First Time Homebuyer money (for about three purchases as of May 7, 2009), and some money for redevelopment areas. They are having some problems with the proper forms being turned in on foreclosed property, so you are encouraged to double check that part of your deals.

Finally,  there are quite a few legislative issues out there currently. In state, folks in Real Estate Finance are paying attention to AB 329 (reverse mortgages), AB 957 (escrow companies), and SB 94 (mortgage loans) and at the federal level folks are paying attention HR 1728 the Mortgage Reform and Anti-Predatory Lending Act.