Will Citibank Sell ALL Their Loans?

You may or may not know that Citibank – like all major banks – already sells almost all of their loans to investors, like Fannie Mae, Freddie Mac, or hedge funds built by Wall Street investment banks that buy mortgage pools. So why, when you get a loan at Big Bank, Inc, do you make...

Will Trump Sell Fannie Mae & Freddie Mac?

Will Donald Trump sell Fannie Mae and Freddie Mac?  If so, why?  To whom?  For how much?  And how will it affect you? There has been a lot of noise the last few years about privatizing Fannie Mae and Freddie Mac (the agencies), and yet nothing has been done about it.  We’ve talked about the...

Conforming Loan Limits Increased!

As expected*, The Federal Housing Financial Agency (FHFA) announced today that they are raising the conforming loan limit for 2017 from $417,000 to $424,100.  This is the first raise in the conforming loan limit since 2006.  This is important because conforming loans – those purchased by Freddie Mac or Fannie Mae – are explicitly guaranteed...

Will Fannie / Freddie Raise Conforming Loan Limits in 2017?

Fannie Mae and Freddie Mac (The Agencies, or F / F for shorthand) continue to make the vast majority of loans in the United States.  Each year they set a limit (the conforming loan limit) for the size of loan they will purchase.  As the average price of homes in the U.S. rises the conforming...

Obama Eases Condo Loan Restrictions

From my friend and attorney extraordinaire, Herman Thordsen: Have you ever tried to get a loan on a condominium only to be frustrated when the loan was turned down because of problems with the condo project?  If so, you’re not alone.  But condo approvals just got a little easier. On July 29, 2016 President Barack Obama signed...

The Importance of Thinking When Getting a Mortgage

One of the themes of my book is that rules-of-thumb are a very bad foundation on which to base decisions about your mortgage options.  I recently completed a refinance for a client that perfectly illustrates the importance of thinking through the goals and concerns of the client before generating options and then choosing one. Background...

HARP Extended – And Replaced

HARP – the Home Affordable Refinance Program offered by Fannie Mae and Freddie Mac for high-LTV homeowners – was set to expire at the end of 2016, but has now been extended through September of 2017.  HARP gives responsible homeowners who would otherwise not qualify because their loan-to-value ratio is too high the ability to...

Will Fannie and Freddie Go Broke?

A couple of news outlets this week picked up a report that concluded that Fannie Mae and Freddie Mac would be broke by 2018. Say what?  Since we are having the best year in the mortgage business since 2007, and Fannie / Freddie (“the agencies”) make 90% or so of the loans in the U.S....

Coming Soon! A Brand New Website!

Hello to my loyal readers.  It’s been obvious for a long time; it’s time to update the look and feel of the website.  But I knew I wanted more than just an upgraded look and feel – I wanted more content and more relevant content that is useful and important to you.  I have begun...

Why Government Can’t Sell Fannie and Freddie

Fannie Mae and Freddie Mac (the Agencies) were taken over by the government back in 2008 when it appeared that their cash reserves would not be sufficient to make their payments to the bondholders who lent them the money that they lent to homeowners. There was no explicit guarantee that U.S. taxpayers would make good...