Fannie Mae (FNM) updated its eligibility requirements for lenders wanting to sell and service residential first mortgages, according to the new selling guide released Friday. To do business with Fannie Mae, lenders must now have a net worth of at least $2.5m — 10 times the previous required net worth — plus a dollar amount equal to 0.25% of the outstanding principal balance of any Fannie Mae portfolio it services. In the April 2009 version of the guidelines, lenders needed a net worth of at least $250,000 and an additional dollar amount equal to 0.20% of the portfolio. The announcements also include updates from reverse mortgage lender letters Fannie Mae and announcements incorporated into the Selling Guide. Fannie said most of the information was unintentionally omitted from the April 2009 Selling Guide, but was added to the October issue. Within the next two months, Fannie Mae plans to issue another update to the Selling Guide that incorporates any outstanding announcements and those made between now and the time of the update. Write to Jon Prior.
Fannie Raises Lenders’ Net Worth Requirement Ten-Fold
Most Popular Articles
Latest Articles
Real estate farming: Become the go-to agent in your area using these tips, tools & strategies
Learn how to generate a steady pipeline of real estate leads and clients in your area using this proven approach.
-
Zillow believes the evolution of the industry will only help it grow
-
All parties have settled the Sitzer/Burnett suit, so what’s next?
-
Longtime reverse mortgage leader Scott Norman appointed CEO of Texas MBA
-
Rates at 7% attract different types of borrowers, forcing lenders to rethink profit strategies
-
The unchanging