I was never any good at line dancing. Nor did I look good in tight jeans, boots, and a cowboy hat. But the line dancing this post refers to isn't done to a Brooks and Dunn song. The DJ in this case is Fannie Mae. The tune they are playing is the "Declining Market Value" boogie.
Pretty much the entire state of Florida has been declared a sinking ship. Fannie Mae has red-tagged us with a 5% off sign, and our wholesale lenders have in turn reduced the loan to value limits in kind. On a 100% product, I can now only lend up to 95%. Needless to say, this has affected our ability to get loans done. With declining property values, appraisals are coming in low. Combine this with Fannie's move and there are a lot of people who can't get financing.
Which brings me to the topic of "redlining". You can't legally discriminate based on geographic location when providing loans. Most of the time, the "redlining" dance has referred to minority or poor areas. But isn't it dangerously close to circle the state of Florida with a red Sharpie and significantly hamper our ability to originate loans in this area? It's as if they have found a legal way to discriminate against the Sunshine State and it's a dance I'm not enjoying.
Lots of AR folks are in a "Declining Market" and I'd be curious to see if anyone else has an "Achy-Breaky Heart" courtesy of our friends at Fannie Mae. As for me, I'm ready to stop dancing, and grab a "Beer in Mexico".
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