Fannie Mae - “Keys To Recovery”

Fannie Mae - “Keys To Recovery”
Fannie Mae is preparing a mortgage initiative to help struggling homeowners and 1st time homebuyers as well. The National Association of Realtors released a statement applauding Fannie Mae for taking a positive step to help stabalize the housing market.

Fannie Mae calls the new series of initiatives "Keys To Recovery." The initiative is designed to provide liquidity, stability and affordablity in the housing and mortgage markets for the long term, keep homeowners in their homes, assisting homebuyers with home purchases and stabalize some of the hardest hit communities in the nation.

The first "key" in a series of 4 "keys" announced include allowing homeowners who currently owe more than the property is worth to refinance their home up to 120 percent of the value of the property. This would allow those who are facing an upcoming adjustment in their mortgage payments the extra equity they need to lock in on a fixed rate mortgage.

The second "key" is renewing and expanding the company's partnership with the state Housing Finance Agencies. The goal is to provide up to $10 billion in financing for qualified first time homebuyers.

The third "key" would allow famalies faced with foreclosure to stay in their homes on a rent to own basis. This initiative would be in partnership with Self-Help Credit Union and would apply to famalies in "hard hit communities."

The fourth "key" would allow jumbo conforming loans to be priced flat to conforming loans for portfolio asset acqusitions through the end of the year.

Richard F. Gaylord, President of the National Association of Realtors, recognized Fannie Mae's initiative by stating “NAR has been working diligently on behalf of current and aspiring homeowners to get legislation and regulation in place to help stabilize the housing market. Today’s announcement by Fannie Mae introducing its “Keys to Recovery” initiative is a positive step toward achieving this goal."

Submitted by admin on 5/06/08
Source: FNMA
NAR