On Wednesday, April twelfth, 2022, NAR together with employees of the Chicago Associations of REALTORS®, Florida Associations of REALTORS®, Miami Associations of REALTORS®, and the South Carolina Associations of REALTORS® in addition to particular person REALTORS® from every of those areas met with senior employees of Fannie Mae to debate points which have arisen from the just lately carried out security and reserving necessities.
Whereas effectively intentioned, the new necessities to confirm the bodily soundness of rental buildings and adequacy of economic reserves have created issues available in the market. The group impressed upon Fannie Mae that:
- Misinformation available in the market is resulting in many home-owner associations (HOAs) pulling again from taking part in Fannie Mae-backed lending.
- Some HOAs, administration corporations, and their counsels are refusing to signal paperwork testifying to the security and monetary soundness as a result of the data just isn’t accessible.
- Fannie Mae and Freddie Mac finance practically half of all mortgages within the US, so the impacts are massive, particularly in markets wealthy with condos.
- The affect can be prone to be felt disproportionately in communities with mounted incomes or in low and moderate-income areas.
- The shortage of financing is pushing extra gross sales to money consumers and buyers.
For its half, Fannie Mae indicated that unintended penalties have come up and that it plans to repropose the principles with a possibility for additional public enter.
NAR has been in shut contact with Fannie Mae and Freddie Mac about this drawback and held multipe discussions. NAR additionally set a letter to their regulator the Federal Housing Finance Company requesting a delay to raised clarify and message the modifications to the market and to resolve issues with documenting security.
NAR will proceed to interact with our member associations and REALTORS® to enhance the accessibility of this necessary financing supply for rental consumers.