Recently, I was working on a search for a client when I came across a Fannie Mae owned property, the lister of which encouraged me to click on the "documents" tab in the MLS. For those of you not in the know, this is a folder that contains any extra disclosures or forms that are required to close the transaction. Lo and behold, what did I find on that day?
The latest folly to be foisted upon a weary industry trying desperately to recover. This form required a potential buyer to agree to pay Fannie-Mae $5,000 if they should have the temerity to re-sell their own home within a year. Note, not only if they sell it at a profit; just if they sell it at all! Where to begin. I understand that these people are trying to punish "investors". This is not the way to achieve that. What of some poor schmo who loses his job, or has to re-locate? Why should he be punished? If a so-called investor is able to make a sufficient profit, then the re-capture amount will best be another cost of doing business.
We do not need any new laws. We need to enforce the ones we already have. The last property boom and bust was fueled, in part, by an "investor's" ability to claim he was going to "owner occupy" each property he bought. Over and over again. To claim such on the purchase contract erroneously is a felony. How many prosecutions have you heard of? Exactly!
Mind you, this is the same Fannie Mae that was formerly run by Franklin Raines. Mr. Raines is famous for massively and fraudulently over-stating Fannie Mae profits in order to inflate share prices. That little boondoggle enriched him to the tune of some $90M. After investigation, he and his two co-conspirators reached a settlement. He surrendered his stock option, which is hilarious because his shenanigans had rendered them worthless, and was fined just under $3M. That, in itself, was particularly odious because the fine was paid by an insurance policy paid for by Fannie Mae. Which means you paid it.
To re-cap then: The same Fannie Mae that was largely responsible for the current melt-down, and that aided and abetted Mr. Raines in his criminal enterprise is now trying to pick our pockets one final time in the unlikely event our home should increase in value.
We are in the best of hands.