House Refinance Center
Fannie Mae and Freddie Mac
Fannie Mae Has
A House For You:
A Plan To Sell
Foreclosures
Fannie Mae Sets
Timeframe For
Foreclosures
Fannie Mae has a large inventory of
single-family houses to sell. At the end of the
second quarter, Fannie owned over 129,000
houses. Fannie will make every effort to get
rid of this inventory of houses.

It will renew the program that offered 3.5% of
the final sales price to the homebuyer. This
money can be used to help with closing
costs.

It will also be offering a bonus of $1,500 to
seller agents who sell owner occupied
properties. Realtors must act quickly
because the offer starts September 23rd
and the transaction must close by December
31, 2010.

Fannie is betting that the sale of this
inventory will stabilize neighborhoods. The
amount paid to realtors could be significant.
For example, selling 65,000 units and paying
the realtors a bonus will mean an
expenditure of $97.5 million. Payment of the
3,5% premium to homebuyers can add
another $341 million if the average selling
price were $150,000. Is it worth it?

To find out more about Fannie Mae houses
you have to contact HomePath.
Fannie Mae has established new timeframes
for servicers to get the job done. Failure to
meet the deadlines will result in steep fines.

For example, the allowable timeframe for
Florida is 185 days. Prior to this
announcement the timeframe was 150 days.

The new foreclosure deadline for Nevada is
150 days, for Maryland it is 90 days. New
York has two different deadlines. Upstate
New York is 300 days and 420 days for New
York City and Long Island.

The new timeframes are for routine
foreclosure proceedings. The clock starts
ticking when a mortgage loan is sent to an
attorney for foreclosure.

The shortest timeframe is 60 days in Georgia
and Virginia. The longest is 420 days in New
York City and Long Island. The reason given
for the great range of the timeframes was
that the states have different laws and
statues. But a difference of over 300 days? In
other words, you can get a foreclosure
completed in Virginia in 60 days, but if you
are in New York you need at least 300 days.
Fannie &
Freddie To
Increase Loan
Fees
A new fee structure starts on March 1st
for Freddie Mac, and on April 1st for
Fannie Mae. Freddie Mac refers to its
fee as an adverse market delivery
charge. Fannie Mae calls its fee the post
settlement delivery fee.

These higher fees were expected for
several reasons. There are less
mortgages being written. Claims on
questionable mortgages continue to
surface. Banks are slow in buying back
bad loans. And to top it all off taxpayers
feel that it is about time that we dump the
two Government Sponsored Enterprises
(GSEs). Taxpayers are paying too much.

Traditionally, one would increase fees on
mortgages that were high risk. Now even
borrowers with excellent credit will pay
the higher fees. A borrower with a credit
score of 740 will pay an additional fee of
0.25% of the loan amount, and someone
with a score of 720 to 739 will pay
0.50% extra.

Borrowers who will be hurt the most with
the new fee schedules are those with
blemished or questionable credit. A
credit score below 720 and you will be
hit with fees ranging from 1.0% to
3.25%. This represents an increase of
about 0.5%.

Lenders must pay the fee and many will
incorporate it into the interest rate or into
the front-end the points charged to
customers.
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