As if there has not been enough loan changes. This week I had my first experience with the new Fannie Mae Guideline Announcement 07-22 Maximum Financing in Declining Markets. For those of you not familiar visit the link at https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2007/0722.pdf . and revised link https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0806.pdf. In our area values have held steady but now Hampton Roads is starting to feel the rest of the country's pain.
The program as spelled out by Fannie Mae reads:
Current home price trends indicate that home values continue to decline in many markets across the country. As a result, and based on our continued monitoring of loan performance, Fannie Mae is reinstating a policy to restrict the maximum loan-to-value (LTV) ratio and combined loan-to-value (CLTV) ratio for properties located within a declining market to five percentage points less than the maximum permitted for the selected mortgage product.
My question is, "Is there a published list of what zip codes, area, neighborhoods are considered in a declining market in Hampton Roads areas?" My buyers lender has yet to give me this answer. Appraisal has not been ordered and loan is being released because the underwriter said property is in zone and has generated a denial letter based on ltv95%. When I ask which areas are in or not in the flagged zones so I can find my buyer another home the underwriter has not given me an answer.
Does anyone know Is there a published list of what zip codes, area, neighborhoods are considered in a declining market?" and if so How can I get this list.
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