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fannie mae

Financing Real Estate

Is Fannie Mae Killing the Golden Goose?

by Florence Foote | November 3, 2009
Thumbnail image for Is Fannie Mae Killing the Golden Goose?

One study of mortgages during the Great Depression found that almost half of urban, owner-occupied homes (on which there was a mortgage) were in default by 1934. The government’s answer was to sponsor the creation of Fannie Mae in 1938 (or as it is really called, the Federal National Mortgage Association), which was, and [...]

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Credit

Borrowers Should Be Aware of the Effects Foreclosures, Bankruptcies and Shorts Sales Will Have on Their Credit

by Christina Inman | October 19, 2009

fannie maeFor homeowners facing foreclosure or bankruptcy–or considering a short sale of their property to avoid one or both–the effect the action will have on their credit is undoubtedly a huge concern. Though keeping their homes might not be an option at this point, there could very well be another one in the not-too-distant future, so knowing when they’ll be eligible to qualify for another mortgage is important.

Be Aware of the Rules of the Road

Earlier this year, Fannie Mae updated its credit guidelines for borrowers who experience one of these circumstances. And, in general, the wait time will now range from two to five years.

Homeowners who lose their properties to foreclosure or file multiple bankruptcies within a seven-year period will have the longest wait–five years.

In the case of foreclosure, additional requirements and restrictions will apply after five years and up to seven years as well, which include making a minimum 10% down-payment, having a credit score of at least 680, and having limited cash-out refinance options. Also, the purchase of second homes or investment properties is not permitted.

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Economy

Déjà vu All Over Again In The Mortgage World

by Richard Warren | October 12, 2009

FHA Logo3Where have we seen this before? A major backer of home mortgages may need a bailout. Oh yeah, that was right here. Wasn’t it only a year ago that Fannie Mae and Freddie Mac needed a bailout to save them from themselves? They had so many bad loans on the books because of lax rules and loose oversight.

Now it seems that the Federal Housing Administration (FHA) is in trouble. According to an article in the New York Times (article) 20% of loans insured last year and another 24% of those from 2007, are in serious trouble.

Didn’t They Learn?

Banks all across the country have tightened lending standards requiring that the borrowers actually have the ability to repay. Imagine that! It seems that just throwing money at anyone who can fog a mirror is not good business. While people complain about how tough it is to get a loan now, they are better off in the long term.

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Real Estate News

The U.S. Run Housing Market: The Nation’s New Landlord

by Charles Feldman | September 16, 2009

Worried about government run health insurance? Maybe you should be more concerned about the government run housing market!

government owned mortgages real estateFor those of you who have lost track of where all our taxpayer dollars have gone as we bailout banks, brokerage houses, car companies, insurance companies…etc—-this sobering statistic courtesy of the New York Times may be a needed splash of chilled water on the face: “The government is financing 9 out of 10 new mortgages in the United States.”

That bears repeating……”The government (as in U.S.) is financing 9 out of 10 new mortgages in the United States.”

According to the Times account, ” Fannie (Mae) and Freddie (Mac) now buy or guarantee almost two-thirds of all new mortgages. The Federal Housing Administration guarantees another 25 percent.”

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Real Estate

Good News for Real Estate Investors Looking for Financing

by Steve Heideman | February 16, 2009

As of last Friday, there is good news for real estate investors with more than 4 financed properties. Fannie Mae is lifting their ban on financing investors with more than 4 financed properties raising the total number to 10.  According to Fannie Mae, the rationale for the change  is that experienced investors can “play a [...]

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Foreclosures

Losing Your Home to Foreclosure? Shoot Yourself and All Will be Forgiven by Fannie Mae?

by Joshua Dorkin | October 4, 2008

In a sign that things have really gone awry, a 90 year old woman, Addie Polk, who was being evicted from her foreclosed home, shot herself two times. This tragedy has become a national story.
According to CNN, “Fannie Mae said it will set aside the loan of a woman who shot herself as sheriff’s [...]

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Commentary

Newspeak or Bankspeak?

by Ted Karsch | September 16, 2008

The parallel I find most striking between the language used by financial executives and the language used by the fascists in 1984 are what Orwell referred to as “Newspeak”.

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Foreclosures

Feds Will Not Freeze Foreclosures

by Rob K. Blake | September 14, 2008

Now that the government controls the GSEs (Fannie Mae and Freddie Mac with their $6 Trillion dollar mortgage portfolios, they could freeze all foreclosure actions dead in their tracks. That is exactly what a group of Senators including Bob Casey, Charles Schemer, Robert Menendez, and Sherrod Brown asked the new GSE conservator, FHFA Chief, [...]

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Commentary

2008 Election and the Implications on Housing and the Fannie/Freddie Bailout

by Tom Koziol | September 12, 2008

This is an election year. That may seem like a tremendous grasp of the obvious but I wish to ask you to look behind that statement so you can see what is happening right in front of your eyes.
What I am really interested in is the Freddie/Fannie bailout. My God, the impact is almost too [...]

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Credit

BREAKING: IndyMac Bank is Shut Down and Taken Over by Feds

by Joshua Dorkin | July 11, 2008

INDYMAC IS OFFICALLY CLOSED!!!
In the past minutes newswires around the country and world are now reporting that the Federal Government has shut down IndyMac Bank and has handed it to the FDIC (Federal Deposit Insurance Corp.) as conservator.
Couple the shut down with the Fannie Mae/Freddie Mac troubles, and we’re in for some really rocky waters [...]

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Housing

Fannie Mae & Freddie Mac: What Will The Feds Do?

by Charles Feldman | July 11, 2008

Fannie Mae and Freddie Mac, combined, own or back up some $5 trillion dollars of debt. That is about half of ALL the mortgages in the U.S. They have already lost some $11 BILLION since the current mortgage/credit crisis began, so it is easy to see why there is profound concern about their fiscal health–or [...]

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