According to NAR's Washington Report dated May 6, 2008, Fannie Mae President and CEO Dan Mudd announced Fannie's new Keys to Recovery Initiative to promote liquidity, stability, and affordability in the housing and mortgage markets.
Here are the highlights:
First, Fannie is working to reduce the cost to consumers of jumbo conforming loans (loans above $417,000 up to $729,750) and make it easier to qualify for these loans. NAR expects these steps to significantly lower mortgage costs and give more choices for many families living in high cost areas.
Second, Fannie is allowing up-to-date borrowers to refinance Fannie Mae-owned mortgages even where current value of the home is significantly less than the existing mortgage. This innovation should help keep thousands of families in their homes and prevent foreclosures that are a disaster not only for families but whole communities.
Finally, Fannie has entered into an agreement with the state housing finance agencies to provide $10 billion in financing for first-time homebuyers and entered into a new partnership with the Self-Help Credit Union to minimize the harm caused by foreclosures and help families become homeowners in rehabilitated foreclosed properties.
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