Fannie Mae decided to allow 5 percent downpayments in declining markets, such as Florida, which will help encourage Florida new home buyers to come back into the housing market. NAR Chief Economist Lawrence Yun stated: “The Fannie Mae decision is huge and will have a positive impact, perhaps significantly, on the housing market. We are very appreciative to Fannie Mae for listening to us and agreeing.” NAR and other organizations have been calling on Fannie Mae & Freddie Mac to change the declining market down payment policy which disproportionately affects lower income families and minorities, as well as first time home buyers. Fannie Mae vice president for credit policy and controls, Gwen MuseEvans, told Realtors in Washington, D.C., last week “We heard the concerns of NAR and we reviewed and determined that changes in our policy were needed”.

Advertisements