Fannie Mae Lists Changes for Resale-Restricted Properties

March 29, 2006

Guide Announcement 06-03, from Fannie Mae expands eligibility requirements to purchase mortgages secured by properties subject to

  1. purchasing mortgages secured by properties subject to resale restrictions when the resale restrictions survive foreclosure or acceptance of a deed-in-lieu of foreclosure;
  2. permitting the loan-to-value (LTV) ratio to be based upon the appraised value without resale restrictions, instead of the lesser of the sales price or market value, for mortgages when the resale restrictions terminate automatically upon foreclosure or upon the acceptance of a deed-in-lieu of foreclosure;
  3. permitting required third-party notifications for mortgages secured by properties subject to resale restrictions;
  4. including nonprofit organizations, universities, and employers as eligible subsidy providers that can sponsor resale restrictions; and
  5. allowing lenders to deliver mortgages secured by community land trust properties to Fannie Mae without special approval.

Source: Fannie Mae


Contact ALTA at 202-296-3671 or communications@alta.org.

North American Title Insurance Company (NATIC) is a seasoned title insurance underwriter, helping title agents to achieve their individual business goals for more than 50 years. Today, the company conducts real estate settlement services in 39 states and the District of Columbia through a network of experienced, independent agents. SoftPro is the nation's leading provider of closing and title software, consistently pushing the technological envelope to pioneer the most powerful and comprehensive closing and title automation software on the market. SoftPro's Award-Winning Software combines cutting-edge technology with outstanding support to make your business more productive, efficient and boost your revenue.