Fannie Mae & The Seattle Condo Market

Have you noticed that Fannie Mae is actively unloading their inventory in the Seattle condo market?

For those of you unfamiliar with Fannie Mae, it was founded in 1938 during the Great Depression.  It is a government sponsored enterprise (GSE).  Its purpose is to expand the secondary mortgage market by allowing  lenders to reinvest their assets into more lending.  Thus creating space for more lenders in the mortgage market.  So why are we seeing them selling so many homes and condos?

Fannie Mae buys (bought) thousands of loans from approved mortgage sellers.  They were given initiatives to expand home-ownership to low and middle income families.  As borrowers began missing payments and the financial market collapsed in part to a growing number of foreclosures, losses mounted for GSE’s like Fannie.

Now with an abundance of inventory from foreclosed homes and failed banks it appears that Fannie is actively adding some of their inventory to the market. In doing so, they are offering incentive programs for both buyers and real estate agents.  I’ve seen offers to buyers that include a 3.5% credit.  They are also offering agents “selling bonus’s” for closings before a certain date.

We will be watching the inventory closely and will update as much as possible.  Hopefully this post added a little clarity to the relationship between Fannie Mae and “bank owned properties” in Seattle.

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