Thread: Fannie Mae Director Program to Turn Homeowners into Renters

Create hiring preferences for minorities for government jobs - Read the Bills!!

Eliminate jobs in the commercial sector through outsourcing and taxes. cause middle class non minority people to lose their homes through massive unemployment, repo the house and turn them into Section 8 housing. Owners must income qualify to rent their homes at a higher standard than Section 8 renters

Redistribution of Wealth, Freddie and Fannie not regulated JMO.

Fannie Mae Director Outlines Program to Turn Homeowners into Renters

by AUSTIN KILGORE
Thursday, April 15th, 2010, 3:23 pm

The director of Fannie Mae’s (FNM: 0.00 N/A) deed for lease (D4L) program outlined the initiative during Thursday’s Texas Mortgage Bankers Association (TMBA) servicing conference.

Miguel Gutierrez said the goal of Fannie Mae is to minimize family displacement for borrowers that participate in a deed-in-lieu of foreclosure program, launched early in November 2009, while managing it in a way so as to not put any undue pressure on Fannie’s ever-growing rental portfolio.

The homeowner-turned-renter is required to pay fair market rent to stay in their home for up to 12 months. The renter must have enough income to sustain a 31% income-to-rent ratio and rental payments are not subsidized by Fannie Mae, but could include renters eligible for Section 8 payments.

As an example, Gutierrez outlined the situation for a fictional family that purchased a $275,000 home in Phoenix with a $247,500 mortgage and a down payment. Including homeowner association (HOA) fees, their monthly payment was $2,050. While those payments were manageable five years ago, the sample borrower had reduced income from his job and HOA fees had increased. Unable to pay their mortgage, the borrower joined the D4L program, reducing their rent to $1,000 while the family continues to look for additional income and/or alternative housing.

The upside of the program for Fannie Mae, Gutierrez said, is promoting neighborhood stabilization, mitigating real estate owned (REO) costs and provides the opportunity to consider other REO strategies, such as maintaining longer rental terms.

“With these benefits to Fannie Mae and borrower, we find the deed for lease program is an effective solution for these properties,â€

Originally Posted by Newmexican

[i]Miguel Gutierrez said the goal of Fannie Mae is to minimize family displacement for borrowers that participate in a deed-in-lieu of foreclosure program, launched early in November 2009, while managing it in a way so as to not put any undue pressure on Fannie’s ever-growing rental portfolio.

The homeowner-turned-renter is required to pay fair market rent to stay in their home for up to 12 months. The renter must have enough income to sustain a 31% income-to-rent ratio and rental payments are not subsidized by Fannie Mae, but could include renters eligible for Section 8 payments.

http://www.housingwire.com/2010/04/15/f ... to-renters

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There are two large underlying issues here: Massive bankruptcies and the imploding job market due to recession.

There are more bankruptcies than the gov will admit, and many more in the pipeline and not even on the books. Jobs dry up, bankruptcies ensue. The old depression formula still works.

The outsourced jobs aren't coming back and the illegal aliens occupying millions of U.S. jobs are never going to leave (voluntarily).

Yes, J.D. Rockefeller .. this IS the PERFECT crisis.

If and when the dust settles, the oligarchy will have increased it's fortunes a thousand fold.

HAPPY2BME wrote,

when the dust settles, the oligarchy will have increased it's fortunes a thousand fold.

Yup. It is an old formula and it still works. Expand credit and create wealth(?) then pull in the credit and the collapse will create bargains for the bargain hunters.

At half-time you can stand in line and get some popcorn.

Time to abolish the Federal Dept. of Education?