Industry NewsMortgage

Fannie: First-time buyers need counseling

Real estate brief

Don't miss the real estate event of the summer
Join 4,000 real estate pros at Connect SF, Aug 7‑11, 2017

Fannie Mae is reinstating required homeownership counseling for first-time buyers who don't have a solid credit history or are seeking loans tailored for low- and moderate-income buyers. Beginning Jan. 1, Fannie Mae will require counseling for home buyers relying on nontraditional credit or obtaining a MyCommunityMortgage loan to purchase a single-family home. Fannie Mae already requires pre-purchase counseling, including landlord education for borrowers purchasing a two- to four-unit property using a MyCommunityMortgage loan. Counseling must be provided prior to closing by an independent and certified third-party agency or counselor, Fannie Mae said, and cover topics including budgeting and credit, selecting a home, and obtaining a mortgage. Homebuyers will receive a personalized assessment of their financial position and readiness for homeownership, and an analysis of their credit history and current financial situation. Although Fannie Mae will encourage face-to-face co...