FannieMae Reinstating Homebuyer Education and Counseling Requirement

Effective January 1, 2009, first-time homebuyers obtaining a MyCommunityMortgage loan or a loan that relies upon nontraditional credit to qualify must receive homeownership counseling and education.

All required borrower counseling will be provided according to the National Industry Standards for Homeownership Education and Counseling, or according to standards of comparable quality that are established by other organizations. The purpose of such counseling is to provide the first-time homebuyer in particular with reliable information and the resources necessary to make an informed decision that will hopefully lead to sustainable home ownership. The stated concern is that too many homebuyers arrive at the settlement table without a full understanding ofthe terms and conditions of their loan or the overall responsibilities of home ownership.

Click here to access the press release issued by Fannie Mae.