Fannie Mae to ease condo mortgage restrictions

WASHINGTON – Jan. 8, 2010 – Fannie Mae announced yesterday that it would comprehensively review hundreds of condominium projects in Florida. Through a new “Special Approval” designation, Fannie hopes to streamline mortgage approvals for projects that don’t currently fit Fannie Mae guidelines even though they present limited risk to the company.

Florida Realtors strongly urged Fannie Mae to revisit its lending program in the condo market, and it consulted a number of Florida Realtors as it developed the program, including Florida Realtors® Vice President Summer Greene, regional manager with Prudential Florida 1st Realty in Fort Lauderdale.

“This is good news for Florida and a step in the right direction for the state’s condominium market,” Greene says. “Hopefully, with the special approval designation process, we can begin to get our condo inventories reduced and absorbed as more condo buyers receive a green light from lenders for loans. This will help boost confidence in the market.”

Fannie Mae and its cousin, Freddie Mac, back more than half of all U.S. mortgages. As the Fannie Mae initiative develops and gains momentum, Greene hopes it provides incentive for Freddie Mac to follow suit.

While Fannie Mae currently has boilerplate guidelines for approving condo loans, it will sometimes grant a mortgage to a non-conforming condo if requested by a lender. The Special Approval designation takes that a step further by approving exceptions before a lender request has been submitted.

A dedicated team of six Fannie Mae professionals based in Florida will now examine statewide condominium projects that may not currently meet Fannie Mae’s standard eligibility criteria and assessing specific criteria more closely. The team will look at a condo project’s occupancy level, association dues, financial stability and property condition. If a project is deemed sufficiently stable following a closer examination, it will be granted the Special Approval designation, freeing lenders to originate and deliver mortgage loans secured by Fannie Mae. Projects deemed eligible will be listed on www.eFannieMae.com, and qualified borrowers will be eligible for financing.
Read all of the article at http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=229442

FHA brings some relief for some condos

The resort-style pool, spa and health club along with luxurious 10-foot floor-to-ceiling windows are no longer the key selling points for 101 Eola in Thornton Park. Today the best thing going for the 146-unit condominium tower is that it's the only newly constructed building in downtown Orlando that is FHA approved, a special government sanction that allows buyers to put as little as 3.5 percent down.
Read more at http://www.orlandosentinel.com/business/orl-bizorl-beth-kassab-condo-061909061909jun19,0,7031870.column

Finding Help

Troubled homeowners know they should call their lender if they hit a bad patch and have trouble paying their mortgage. However, a call to a financial counselor willing to look at a family's finances and offer a plan toward stability is just as important - but who do you trust with all the scam foreclosure schemes out there? There are several legit programs, most of them government-backed. HUD's Housing Counseling Program hosts a list of approved counselors online at: www.hud.gov/offices/hsg/sfh/hcc/fc and click on "Florida." Counselors can guide homeowners to appropriate aid programs. Those include: Hope for Homeowners ( www.hud.gov/hopeforhomeowners or 800-225-5342) and Hope Now (www.hopenow.com or 888-995-4673).© 2009 FLORIDA ASSOCIATION OF REALTORS®

Mortgage Fraud

Reports of mortgage fraud in 2008 rose by 26 percent nationwide compared to the prior year, according to the Mortgage Asset Research Institute. Among the 50 states, Rhode Island ranked first for mortgage fraud last year, bumping Florida to second place. Read the full story: http://www.floridarealtors.org/NewsAndEvents/n2-031709.cfm

MORTGAGES

Real estate agents scrambling for a new way to move buyers into homes could tap an obscure home-loan program offered by the U.S. Department of Agriculture. It requires no money down, and builders are using it to offer deals like "$500 moves you in." However, the program may run out of funding soon unless Congress acts.Read the full story:http://www.floridarealtors.org/NewsAndEvents/n1-121608.cfm

Financial Bailout

House Speaker Nancy Pelosi said yesterday that the Bush administration must do more to help struggling borrowers stay in their homes before Congress will release more money to the Treasury Department's financial system bailout. So far, the Treasury has spent $335 billion, leaving its first installment with only $15 billion.Read the full story: http://www.floridarealtors.org/NewsAndEvents/n5-121608.cfm

Orlando Real Estate Market Update

The August statistics for the Metro Orlando area issued by the Orlando Regional Realtor(R) Association show no improvement compare to the past few months. The inventory is largely stable under twentyfivethousand units. The new listings have actually gone back a few hundred to 4,064 and the closed sales number declined to 1,225. New tighter lending policies might have had an influence on the sales as fewer families are able to secure financing. With the sub prime market virtually no longer in existence more home buyers resort to government backed loans as their financial option. Interest rates were at 6.39% on average for the month of August. We will see what the Government takeover of Fannie Mae and Freddie Mac will do to interest rates and availability in the Florida Market. Fall and Winter has shown a seasonal slowdown over the last years so we do not expect a short term increase of sales activity. Certainly now is the best time to purchase and to take advantage of the buyers market. The continued stream of foreclosures and short sales provide interesting opportunities for investors and first time home buyers alike.

Foreclosures

The number of failing mortgages in Florida continued to rise in the second quarter, according to the latest Mortgage Bankers Association survey. In Florida, the percentage of home loans in foreclosure was higher than in any other state and almost double the national average. A small consolation: Subprime foreclosures may have hit their peak in Florida, the report says.

Read the full story at http://www.floridarealtors.org/NewsAndEvents/n3-090808.cfm

Government Bail out for Freddie Mac and Fannie Mae

NEW YORK – Sept. 8, 2008 – Few outside Washington and Wall Street may understand what Fannie Mae and Freddie Mac do, but the government’s bailout of the two will likely be felt in cities and suburbs across the country.The takeover will be good news for those looking to buy a home or hoping to refinance their mortgages if it leads to lower interest rates, as experts expect.But for homeowners already behind on their mortgage payments, or who owe more than their homes are now worth, the plan unveiled Sunday by Treasury Secretary Henry Paulson offers little in the way of extra relief.

Read on for the full article: http://www.floridarealtors.org/NewsAndEvents/n1-090808.cfm