fnma red tape

8 Replies

Just posting to see if anyone else can relate to this.

In the process of buying my 2nd rental unit...a fannie mae. I am buying all in cash and under the same llc which I purchased my first unit under.

Well so far I have had to get for them:

1 An official certified copy of my articles of organization (had to order from Ny state DOC for $35) as my copy didn't have the filling number ON it.

2 Proof of publication for my llc.

3 Operating agreement of my llc

4 For good measure a notarized resolution that I am authorized to make the transaction on behalf of my llc since in the operating agreement it wasn't "transaction specific enough". It happens to be single membered with myself as the single member.

Maybe this is the norm but I sure didn't need to do all this by my first purchase.

I should mention that I am supposed to close this Thurs. but the closing agent needs an extension to get together title ins. etc.

having bought fanny,freddie,and hud homes thru my llc I can tell you the first time is a pain but now that you are almost thru after this it will be like dancing keep your on the prize a good deal for you Good Luck

True...But anyone could write any old operating agreement and send it in, not like it has any official stamp, and likewise for the resolution. Feels like red tape, but i do appreciate your words of caution.

SOP for most, God I wish the red tape I deal with was that easy.

Originally posted by @Mark Cohen :

Just posting to see if anyone else can relate to this.

In the process of buying my 2nd rental unit...a fannie mae. I am buying all in cash and under the same llc which I purchased my first unit under.

Well so far I have had to get for them:

1 An official certified copy of my articles of organization (had to order from Ny state DOC for $35) as my copy didn't have the filling number ON it.

2 Proof of publication for my llc.

3 Operating agreement of my llc

4 For good measure a notarized resolution that I am authorized to make the transaction on behalf of my llc since in the operating agreement it wasn't "transaction specific enough". It happens to be single membered with myself as the single member.

Maybe this is the norm but I sure didn't need to do all this by my first purchase.

I should mention that I am supposed to close this Thurs. but the closing agent needs an extension to get together title ins. etc.

 Did this end up working out?

(206) 407-5452

HI Mark,

These items are normal not just in a conventional loan scenario but also in any other financing or legal transaction.

The closing agent or attorney probably wanted to know that your entity was 1) actually filed, 2) its still currently active with no outstanding judgments, liens, or UCC filings against any assets within that entity, 3) that you are actually a member of the entity and have the authorization to make that legal decision.

I usually provide articles of organization, cert of good standing from sec of state, and operating agreement if LLC or Bylaws if Scorp/Ccorp.

There is a statement of information form that is used to verify this with the state so the closing agent can make sure youre infact providing accurate documents. Entities have UBI #'s or EIN#'s to identify them. 

Albert Bui, Lender in CA (#345453), WA (#345453), TX (#345453), and TN (#345453)
949-514-5106
Originally posted by @Adrian Chu :
Originally posted by @Mark Cohen:

Just posting to see if anyone else can relate to this.

In the process of buying my 2nd rental unit...a fannie mae. I am buying all in cash and under the same llc which I purchased my first unit under.

Well so far I have had to get for them:

1 An official certified copy of my articles of organization (had to order from Ny state DOC for $35) as my copy didn't have the filling number ON it.

2 Proof of publication for my llc.

3 Operating agreement of my llc

4 For good measure a notarized resolution that I am authorized to make the transaction on behalf of my llc since in the operating agreement it wasn't "transaction specific enough". It happens to be single membered with myself as the single member.

Maybe this is the norm but I sure didn't need to do all this by my first purchase.

I should mention that I am supposed to close this Thurs. but the closing agent needs an extension to get together title ins. etc.

 Did this end up working out?

Nope, they couldn't provide a clean title. They did return my emd and my lawyer didn't charge me (i gave him an amazon gift though).

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