Homebuyers today are more educated in the housing market than ever before. Not only are they becoming more savvy on how to purchase a home, but their choices in choosing a lender has slightly changed. With all the negative news of larger bank corporations such as Bank of America, JP Morgan Chase, and Wells Fargo, it is not surprising more prospective homebuyers are looking at smaller lending institutions. Credit unions, local banks and mortgage brokers can help provide consumers with guidance on what their credit options could be. The advantage of working with smaller lenders can benefit the prospective homebuyer because it instills a close working relationship with the lender. How does Fannie Mae plan on assisting the smaller lenders? As one of the biggest loan originators in the country, with their liquidity and support they can know start working on programs to help assist the smaller lender. For example, is it plausible for the smaller community lenders to sell their loans to Fannie Mae while retaining servicing on the loans? By allowing the smaller lenders to remain in contact with the consumer would be beneficial for both parties. Fannie Mae has also suggested using a sub-servicer to manage the billing and other issues that can arise from consumer mortgages. Fannie Mae’s guidelines to become a part of the Fannie Mae community are extremely rigid. However, once you are approved Fannie Mae will do everything they can to provide services to assist in any way possible. By working with smaller lending institutions Fannie Mae hopes to be able to reach more homebuyers and help grow their network and relationships with the smaller banking communities. It is a proactive approach by Fannie Mae to help build strength in the banking community between larger and smaller banks. With housing still much in the news and as our fragile economy struggles to gain ground, it only makes sense for Fannie Mae to reach out to the smaller services as well, as they too have been hit with defaults and foreclosures. K. Justin Restaino is vice president of Titan List & Mailing Services Inc. For more than 13 years, he has led Titan’s Mortgage Division, helping lenders of all capacities grow their businesses utilizing targeted direct mail. With a specialized focus in refinance and purchase markets, Restaino has the insight for proper data and mail application for success. He may be reached by phone at (800) 544-8060, ext. 204 or e-mail [email protected].