This post was prompted by a learning I had in my broker class in Real Estate Finance. The question is, “How many mortgages may an individual hold according to Fannie Mae/Freddie Mac regulations?”
The Rest of the Story was made famous by Paul Harvey. However, these words symbolize something very relevant for today. Do you dig a little deeper or just accept what the pundit on TV describes as the truth? Do clichés describe your response to posts on Active Rain or life in general? Do you seek to discover the rest of the story?
What do I mean? How often do you say …?
· “There is too much government bureaucracy.” Somehow believing that all that ails us is due to the government. If we just did not have this big government breathing down our back we would be fine.
Now please do not make this into a political post. I am not interested in talking about the politics of this statement. I am more interested in challenging you to reflect and respond in constructive ways related to your attitudes and responses to the clichés you utilize in your life.
My answer to “How many mortgages may an individual hold according to Fannie Mae/Freddie Mac regulations?” was immediately “4.” I would like to get another residential mortgage since I have 4 mortgages, but have been unable to do so. I could secure a commercial loan, but not a residential mortgage. My assumption has always been that the government or more accurately, Fannie Mae and Freddie Mac changed their rules and regulations. What is the answer? Do you know?
Much to my surprise, the instructor told us the limit according to Fannie Mae and Freddie Mac is 10. What? Those who write mortgages have what are called overlays. They overlay stricter regulations in order to ensure being able to sell the note to at least two investors. This means the marketplace is responding to risk and minimizing it. My assumption that the rules and regulations had been changed on the federal level was proven to be inaccurate. This was the market place at work. I was guilty of blaming the government for this limitation to my way of doing business. I was wrong.
How about you? Where do you need to stop assuming and learn the facts?
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