According to an article in Mortgage News Daily, Fannie Mae is rolling out a new program to help borrowers that are "underwater in their current mortgage". The borrower needs to be current on the mortgage to be refinanced and it has to be a Fannie Mae owned or insured mortgage. They will be able to finance up to 120% of their current value.
This could potentially be huge, but beware as the details could kill it. What about MI and what are the qualifying parameters? Do your research well and then be ready to do some marketing.
If this truly comes about as a way to help consumers then you have a tremendous opportunity. Stay abreast of this developing issue and then be the first to broadcast. Offer a press release to your local newspaper, look to get on a local radio program to discuss the issue and then do other marketing to announce the new program. If you are first in line to bring the program to the publics attention, you will gain credibility and hopefully, more loans to your pipeline.
Hi: Thank you for that useful information. I have a question, when you say "insured mortgage", does that apply to those who currently have a covnential mortage with PMI (mortgage insurance)? Or is this only for FHA / Fannie insured mortgages?
Posted by: private | May 15, 2008 at 05:53 PM
These "new" programs sound great, but so far the MI companies are not on board ... In practice, it doesn't seem like this will actually be available. Thanks for sharing the update. Keep up the good work.
Posted by: T Engel | May 27, 2008 at 07:38 PM