Skip to main content

Michael Flynn named HUD's acting general counsel

National Mortgage Professional
Nov 03, 2008

NACEDA: Community development leaders praise Fannie Mae Homebuyer Counseling required to prevent foreclosuresMortgagePress.comNACEDA, Fannie Mae, foreclosures, counseling, MyCommunityMortgage, National Alliance of Community Economic Development Associations Contact: Jane DeMarines, Cell: (202) 997-8785, [email protected] Kim Hayes, (301) 585-1131, [email protected] With 9,100 foreclosures occurring daily, and four million more projected over the next two years, pre-purchase homebuyer counseling is sorely needed to prevent these catastrophic numbers from rising further. That is why the national organization representing the community development field is applauding the recently announced Fannie Mae pre-purchase borrower education and counseling requirements. First-time homebuyers obtaining a Fannie Mae MyCommunityMortgage now must complete pre-purchase home-buyer education and counseling. Additionally, if the borrower is relying solely on nontraditional credit to qualify for the mortgage loan, regardless of loan product or home-buyer status, they must complete pre-purchase home-buyer education and counseling. "This follows best practices coming from the community economic development field and will undoubtedly reduce the number of foreclosures in the future," said Bernie Mazyck, vice chair of the National Alliance of Community Economic Development Associations (NACEDA) and President/CEO of the South Carolina Association of Community Development Corporations. "NACEDA's members counseling data shows that those who have received counseling have infrequently ended in foreclosure. Ninety percent of CDCs are actively providing foreclosure counseling in low-income neighborhoods." Recent homebuyer data captured by NeighborWorks America corroborates this: 1/5 the delinquency rate of subprime loans (2nd qtr, 2007) 30-day delinquencies: Sub-prime borrowers: 14.5 percent; NeighborWorks borrowers: 3.34 percent. Foreclosure rates (2nd qtr, 2007) Sub-prime 2.45 percent, NeighborWorks 0.56 percent. Fannie Mae's new requirement also states that all education and counseling must be provided by a third party that is independent of the lender and must adhere to the National Industry Standards for Homeownership Education and Counseling. If there is not eligible counseling provider in the borrower's area, telephone counseling may meet Fannie Mae's requirements and online counseling may be provided by mortgage insurance companies. Sound and sustainable homeownership "We hope that other financial institutions will put such requirements on their loans," said NACEDA Executive Director Jane DeMarines. "Every family has the right to affordable housing and a community where their children can thrive. Homebuyer education is a key piece of the puzzle to sound and sustainable homeownership." For more information, visit www.NACEDA.org.
Published
Nov 03, 2008
Home Partners Of America Launches Choice Lease Program

Home Partners of America launched its Choice Lease program aimed at addressing the affordable housing crisis and mortgage access challenges, that are faced by low-to-moderate-income families and underrepresented communities.

Industry News
Jan 17, 2022
KBRA Assigns Preliminary Ratings To OBX 2022-NQM1 Trust

Kroll Bond Rating Agency assigned preliminary ratings to six classes of mortgage pass-through notes from OBX 2022-NQM1 Trust, a $556.7 million non-prime RMBS transaction.

Non-QM
Jan 17, 2022
Zillow: Black Mortgage Applicants Denied 84% More Often Than White

Zillow recently analyzed data from the Home Mortgage Disclosure Act and found that Black mortgage applicants are denied a mortgage 84% more often than white applicants.

Analysis and Data
Jan 13, 2022
Mortgage Economic Review January 2022

The Mortgage Economic Review is a monthly summary of Key Economic Indicators, Data, and Events pertinent to Mortgage and Real Estate Professionals.

Analysis and Data
Jan 13, 2022
Fairway Independent Mortgage Corp. Puts Employees' Health First

Fairway Independent Mortgage continues to allow its employees to choose whether to return to the office or not.

Industry News
Jan 12, 2022
First American Agrees To Acquire Mother Lode Holding Co.

Acquisition would expand First American’s footprint in 11 states

Industry News
Jan 12, 2022