Fannie Mae announced earlier this week that it was increasing the minimum required net worth required for approved sellers to $2.5 million, plus 0.25% of the outstanding principal balance of its total portfolio of mortgage loans serviced for the GSE.
Over the last 12 months, Fannie Mae has increased approved sellers net worth requirements from $1.65 million by June 30, 2009 to $2.5 million by the end of the year. That’s no small jump for mortgage bankers.
Besides FNMA, the Federal Housing Administration is proposing a rule to increase lender net worth requirements from $250,000 to $1.25 million and would become active within one year of the enactment of the rule said a statement from HUD.
With FNMA approval being out of reach of most mortgage bankers, the number of reverse mortgage lenders who are able to see the benefits of delivering directly to the GSE will shrink.
However, this also presents an opportunity for FNMA approved seller/servicers to act as investors to mortgage bankers who can’t meet its net worth requirements.