Interview With Danny Kwon About Fannie Mae And Freddie Mac
First, I would like to introduce one of my amazing lending partners, Danny Kwon. Danny is a Branch Manager for a local mortgage broker and has been in the industry for nineteen years. It is hard to come by someone who has Danny’s knowledge, experience and business values. He has a high standard for himself, in both, business practices and staying informed on market trends. Because of this he is able to give high level service to clients looking for the best solution for their mortgage needs. I am thankful to have Danny as one of my trusted lender partners.
Here is an overview of our interview discussing recent updates from Fannie Mae and Freddie Mac.
Q: What are Fannie Mae and Freddie Mac?
A: Fannie Mae and Freddie Mac are Government Sponsored Enterprises also known as GSEs. They do not loan directly to consumers, but guaranty third party loans in the secondary market, allowing banks to get back liquidity.
Q: What changes or updates have come from Fannie Mae and Freddie Mac recently?
A: If you’re in forbearance and still making your mortgage payment, you can still purchase or refinance without delays or penalties.
If you’re in forbearance and are not making payments, you must be current, then make 3 consecutive payments before you can get a new loan (purchase or refinance).
The rule before this was 12 months before you can get another loan. Current does not mean you have to catch up on all missed payments, but you must adhere to the specific agreement made with your current lien holder.
Q: What else should the new home buyer or homeowner know about Fannie Mae and Freddie Mac?
A: They have great resources on their websites about credit, down payment assistance, and products for first time home buyers. They also both have a low 3% down purchase loan product you can get today.
Q: What other important things are there to note in the current market?
A: Purchase applications are up for the 5th straight week. Interest rates are down about 1% from this time last year.
We are at historic 50 year lows with rates, so purchasing power is higher now that it’s ever been.
If you have are curious how this affects you and your future real estate goals, contact us today!