FANNIE MAE » Current Rates, News & Information

The HomePath program offered through Fannie Mae is providing attractive incentives to prospective home buyers looking to save money on a home purchase. As a part of the program, Fannie Mae is selling foreclosed homes with low down payments and other incentives that could make buying a home easier for the person on a budget.

HomePath Program Basics

Fannie Mae issued new standards for mortgage servicers regarding the management of delinquent loans, foreclosure time frames and default prevention. The rules, released on Monday, fell under the Federal Housing Finance Agency’s Servicing Alignment Initiative and are meant to improve homeowner communications and modifications surrounding the processes following a delinquency.

Servicers to Follow New Rules Following a Delinquency

Homeowners in foreclosure may be able to take advantage of a special program Fannie Mae is initiating to help its customers stay in their homes by renting. Known as the “Deed for Lease” program, homeowners who don’t qualify for loan modifications are allowed to transfer their property to Fannie Mae in exchange for a lease.

How the Program Works

Fannie Mae announced it will double the fee it charges lenders effective October 1st. The “adverse market delivery charge” fee will double to 0.50 percent from 0.25 percent, adding a $1,000 to a $200,000 loan. The increase in costs to lenders will most certainly be passed on to borrowers in the form of additional fees or an interest rate increase. The fee increase will likely be passed on to borrowers and further press low down payment and credit challenged borrowers.