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This recent change just made it harder to buy or sell an apartment

New rules passed earlier this year by giants Fannie Mae and Freddie Mac are creating disruptions in the housing market for buyers or sellers of condominiums or condominiums, according to representatives and trade unions. The new rules are meant to be. to address concerns about the aging of apartment buildings as a result of the collapse of the Champlain Towers South homes in Surfside, Florida, last year. To protect buyers and lenders, the law requires coordination committees and joint committees to disclose any known significant delays that may affect the safety and reliability of building and financial plans to address them, in according to Fannie Mae. “Freddie Mac’s needs are designed to help ensure housing with old-fashioned equipment is safe for its occupants and that homes and condominiums that require significant renovations are planned to do so.” said spokesman Freddie Mac. they refused to fill out the form. This prevents buyers and sellers from closing the deal. Condo groups say obtaining the required documents is weighty and they are concerned that discussions about savings and building integrity will put them at risk of liability, said Nancy T. Polomis, a Minnesota attorney representing the committees. housing. Critics also reject a one-size-fits-all approach — which applies to all five-unit or more buildings regardless of type, location, or age of the building, ”he said. per. “It seems Fannie Mae and Freddie Mac have taken a big part in tackling the small bite problem,” Polomis said. While lenders and lenders are in a difficult position, sellers and buyers are suffering, while their trade is ruined because lenders will not be able to close their loans without it. Freddie and Fannie guarantee or buy mortgages from creditors, making loans less risky to repay. If the loan does not meet new requirements and the giant and bamboo will not repay it, the lender will often not lend. “I will be angry,” Polomis said. Everyone is dancing to balance the risk with what is being pursued. “Who started working in early January for Fannie Mae and in late February for Freddie Mac, is expected to be permanent. And they have already made an impact in the market, says Chris Muellenbach, broker with Compass. “Private organizations refuse to fill out a form,” said Muellenbach. Muellenbach’s co-workers. lenders who will hold the loan.Abanks, Credit Unions, and Lenders may lend to Technology Masters, but they usually take the highest interest rate to buy the money and complete the transaction. But most buyers will not be able to do that. ”If you are trying to buy n accommodation for $ 140,000, you have no resources for that, ”Muellenbach said. know more about regional architecture than major national lenders in other parts of the country. ” There are a few local banks here that will cover loans for people buying accommodation, ”he said. But in the end it is the sellers who will enjoy it, he said, because the new law cuts deep into the pool of shoppers who can buy their homes. ” If they can’t get a regular loan there, you lose a lot of buyers. “Condo groups have demanded a delay. The rules are confusing to a national group representing real estate. The unions have demanded that the Federal Housing Authority (FHFA), the federal government in charge of Fannie and Freddie, suspend the rules for a long time. one year. ” quality, orderliness, or living problems due to interim guidelines, “the Center for Civil Society said in a letter to FHFA. have unintended consequences. Pushing more buyers, including investors, into real estate markets at a time when prices are falling sharply. ” in many markets, especially for first-time home buyers, people with moderate incomes and the elderly, ”Bauman said. FHFA spokesman says the agency is committed to ensuring that the financial and physical health of homeowners, housing associations and cooperatives is given priority. “Unfortunately, June 2021 Surfside highlighted the need to strengthen measures to protect borrowers and homeowners and partners and to reduce the risks faced by Fannie Mae and Freddie Mac, “the spokesperson said. . reduce it war loss of life due to high delay care, the spokesman said. said.FHFA says it is working with professional entrepreneurs to reduce industrial damage r Questions are heard for housing associations, lenders, etc. are more aware of policy changes while considering permanent owners fitness.

New rules introduced earlier this year by giants Fannie Mae and Freddie Mac are creating disruptions in the housing market for those seeking to buy or sell apartments or condominiums, according to officials and landlords. private.

The new regulations are intended to address concerns about the aging of apartment buildings as a result of the collapse of Champlain Towers South in Surfside, Florida, last year. To protect buyers and lenders, the law requires coordination committees and joint committees to disclose any known significant delays that may affect the safety and reliability of building and financial plans to address them, in according to Fannie Mae.

Spokesman Freddie Mac said: “Freddie Mac’s needs are designed to help ensure that buildings with anti-aging properties are not safe for their occupants and that homes and condominiums that require significant renovations are planned to do so. , “said spokesman Freddie Mac.

But many peace and cooperation groups have refused to fill out the form. This prevents buyers and sellers from closing trade.

Condo groups say they see the required documents as burdensome and are concerned that discussions about savings and building integrity will put them at risk of liability, said Nancy T. Polomis, Minnesota attorney representing real estate. . Critics also reject a one-size-fits-all approach that applies to all buildings of five units or more regardless of the type, location, or age of the building, she said. .

“It seems Fannie Mae and Freddie Mac have made a big mistake to deal with a small bite problem,” Polomis said.

While lenders and lenders are in the thick of things, sellers and buyers alike are suffering, as their business is ruined because lenders will not be able to close the loan without filling out a form.

Freddie and Fannie guarantee or buy mortgages from creditors, making mortgage a mortgage and risk taking out. If the loan does not meet the new requirements and the giant and the bamboo will not return it, the lender will often not give the loan.

“If I was a landlord I would have tried to sell my basket and that would have prevented me from doing so,” Polomis said. “I would be upset with my team, but the board of trustees has a responsibility to do the right thing for the team as a whole, everyone is playing a role in balancing the risk and what is right.”

Buyers and sellers in bondage

The interim rules, which took effect in early January by Fannie Mae and at the end of February by Freddie Mac, are expected to be permanent. And they have already made an impact in the market, says Chris Muellenbach, broker with Compass.

“Non-governmental organizations are refusing to fill out the form,” said Muellenbach. “It happens all the time and it will continue to happen.”

The $ 850,000 home in Milwaukee is perfect for a Muellenbach couple working together. But the building authority will not complete the additional pound, which would prevent buyers’ loans from closing and threatening to block the sale.

This leaves buyers with two options: pay cash for the assets or find a lender who will hold the loan. Banks, credit unions, and private lenders may offer unsecured loans to potential investors, but they usually carry higher interest rates.

Muellenbach buyers chose to buy the cash and completed the transaction. But most buyers cannot do that.

“If you’re trying to buy a $ 140,000 hostel, you don’t have the resources for that,” he said.

Muellenbach said it is consulting with smaller local lenders who have more visual experience on local buildings than large national mortgage companies in other parts of the country.

“There are a few local banks that will cover loans for people who buy accommodation,” he said.

But in the end it is the sellers who will enjoy it, he said, as the new law cuts deep into the pool of their home buyers.

“I like the sellers because of the money they will leave on the table,” Muellenbach said. “The number of buyers is very low. If they can’t get a regular loan there, you lose a lot of buyers.”

Condo teams need to be delayed

The rules are so confusing that a national housing association has asked the Federal Housing Authority (FHFA), the federal regulator in charge of Fannie and Freddie, to suspend the law for a year.

“Lenders are prohibited from buying houses and repaying mortgages in private homes and joint ventures without safety, quality, orderliness, or quality of life due to temporary regulations,” he said. heard the Community Center in a letter to the FHFA.

Dawn M. Bauman, CAI’s senior vice president for government and public affairs, said the legislation could have the unintended effect of sending more buyers, including investors, to the condom market in the right direction. when supplies are scarce.

“Landlords are an affordable option in many markets, especially for first-time home buyers, people with moderate incomes and the elderly,” Bauman said. “People who come in with any offer are not people who need affordable options.”

A spokesman for FHFA said the agency was committed to ensuring that financial and physical care was given priority to borrowers as well as homeowners and cooperatives.

“The catastrophic June 2021 demolition of the Surfside real estate project demonstrates the need to strengthen measures to protect lenders and homeowners and cooperatives and to reduce the risks associated with Fannie Mae and Freddie Mac,” the spokesman said. “The spokesman said.

The policy changes implemented by Fannie Mae and Freddie Mac earlier this year are raising standards for housing and the amount of relevant information required from building managers in an effort to reduce the negative financial impact on lenders when building savings accounts are not enough money, and to reduce the size. the potential for loss of life as a result of serious care delays, the spokesman said.

FHFA says it is working with giants and guerrillas to reduce barriers to inquiry-related industries so that housing associations, lenders, etc. can better understand change policies as they consider policies. permanent and permanent.

This recent change just made it harder to buy or sell an apartment Source link This recent change just made it harder to buy or sell an apartment

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