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Monday, October 18, 2010

What percentage of Condos need to fail Fannie Recertification before it fails?

If you think about the very premise that Fannie Mae requires that loans in common interest communities (especially condominiums) be backed up with various data points ( ie the parts of the recertification process) and that this recertification process will revel that at least ____% of them will fail.

What is that % number (20 -60) when reached shows that loans that Fannie Mae itself owns  are not eligible for Fannie Mae underwriting.    Do you get what we are saying.   The biggest mortgage note holder notes are not going to be going forward backed by them they have worthless paper in their own underwriting process.

How can they resell these units or anyone else for that matter?

2 comments:

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