You will find Fannie Mae Servicing Guide Announcement SVC – 2012-19 in the PDF Attachment below which supports this statement. On page 6, you will see under the sub heading Unacceptable Short Sale Transaction Costs, and I quote “buyers discount points or mortgage loan origination costs.”
This means that if your shopping for a new home and the loan is held by Fannie Mae , you can not ask for the Traditional closing costs credit even if you exceed the asking price of the home. This will cut the NUMBER of people who can buy the home. At least to me this lacks some logic. Do we and when I say “WE” I mean the Tax Payers who still control “Fannie Mae and Freddie Mac”, want to limit the number of people who can buy a home before it goes into foreclosure? The old saying that “Common Sense is not that common” just keeps rushing into my mind. Who did the math on this and compared the facts that FHA and Fannie Mae policy should be in alignment. What is even more odd is, Fannie Mae will allow for this type of closing cost credit on the loans they still invest in everyday in the marketplace. Really! I just called a Bank and confirmed that this is still the policy.
The complexity of short sales transactions is growing. Dealing with professionals that know where the rules are and how to apply them is very important to achieve success. You don’t want to spend a few months waiting to find out Fannie Mae will not allow for Traditional closing cost consideration, as is standard in a FHA Transaction. Will this rule change? I sure hope so! Realtors talking about this rule impact will / could change it. Fannie can you hear us?
CLICK ON THE LINK BELOW TO GO TO THE RULES IN PDF
George Kenner Broker Associate – Keller Williams Realty – Ca. Lic. Number 01229951
619-723-5715 – email@example.com