Fannie Mae Lists Changes for Resale-Restricted Properties
March 29, 2006
Guide Announcement 06-03, from Fannie Mae expands eligibility requirements to purchase mortgages secured by properties subject to
- purchasing mortgages secured by properties subject to resale restrictions when the resale restrictions survive foreclosure or acceptance of a deed-in-lieu of foreclosure;
- permitting the loan-to-value (LTV) ratio to be based upon the appraised value without resale restrictions, instead of the lesser of the sales price or market value, for mortgages when the resale restrictions terminate automatically upon foreclosure or upon the acceptance of a deed-in-lieu of foreclosure;
- permitting required third-party notifications for mortgages secured by properties subject to resale restrictions;
- including nonprofit organizations, universities, and employers as eligible subsidy providers that can sponsor resale restrictions; and
- allowing lenders to deliver mortgages secured by community land trust properties to Fannie Mae without special approval.
Source: Fannie Mae
Contact ALTA at 202-296-3671 or email@example.com.