Couple of important Fannie updates recently:
- On the one hand, they are putting the breaks on foreclosure sales and implementing new policies to work with owners in default to try and keep them in their homes.
- On the other hand, they're making it much harder to get new Fannie loans for condo buyers. New requirements are that 70% of units must be presold and existing projects can't have more than 15% of all units behind on HOA dues.
On the foreclosure prevention effort, this seems like a good idea given that putting more inventory out their at distressed prices seems like that last thing we want to see in this market. Hopefully this will help buy some time for the stimulus to kick in. No one really knows if it will work. One thing is for sure, doing nothing hasn't worked so good…
On the tighter guidelines for condo loans, it would have been great to have implemented these more conservative guidelines last year to soften the landing. You could almost make the argument that now that things are where they are, it isn't the ideal time to make it harder for buyers to get financing.
These tighter restrictions on condo sales are a bitter pill to swallow now, but they will help stabilize the market in the long run.
Well as a person who is waiting for the Marselle to close in June… I can tell you this change just might make many of us lose our units….
One thing is for sure, doing nothing hasn’t worked so good…
Why? Shouldn’t prices that are in tune with median incomes be a desired outcome?