WASHINGTON — Fannie Mae today announced that it will reinstate mandatory homeownership counseling and education for first-time homebuyers obtaining a MyCommunityMortgage(R) loan or a loan that relies on nontraditional credit to qualify.
"High quality counseling provides the first-time homebuyer in particular with reliable information and the resources necessary to make the kind of informed decisions that ultimately lead to sustainable homeownership. In this extraordinary market, we think it is critical to reinstate this requirement and to work with counseling agencies and our lender partners to help homeowners succeed," Fannie Mae President and CEO Herb Allison said in a written statement.
The requirement becomes effective Jan. 1, 2009.
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The counseling curriculum, provided prior to closing by an independent and certified third party agency or counselor, will cover a variety of topics related to home buying and will include a personalized assessment of the borrower's financial position and readiness for homeownership.
Fannie Mae will continue to encourage face-to-face education and counseling, with some flexibility for telephone counseling, to accommodate borrowers who are unable to attend face-to-face sessions or who do not have an eligible provider in their area.
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