NH Housing Finance Authority

In combination with great rates the New Hampshire Housing Finance Authority  offers 4% cash grants to help first-time buyers with down payment and closing costs.

Published in: on February 10, 2011 at 1:09 pm  Leave a Comment  

Prosposed ban on secondary market transfers…how could this effect you?

Transfer fee covenants are a relatively new phenomenon that began in California and Texas. A transfer fee covenant requires the payment of a transfer fee every time the property is transferred to a new owner. The fee can be payable to any person or entity. Fees are typically 1 to 2 percent of the property’s sales price.
On February 1, 2011, the Federal Housing Finance Agency (FHFA) issued a proposed rule that would ban the secondary market purchase of most mortgages that are encumbered by private transfer fees, given FHFA’s determination that such fees are “adverse to the market and homeowners.” The rule would apply to the following “regulated entities”:  The Federal National Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation (“Freddie Mac”), and the Federal Home Loan Banks.
The proposed rule acknowledges that transfer fees paid to homeowners’ associations or certain nonprofits can “contribute to the value of the burdened property.” FHFA accordingly exempts such transfer fee covenants from the application of the rule if the transfer fees are “used for the direct benefit of the encumbered properties.”
The proposed rule is generally prospective in effect and applicable to transfer fees created on or after the publication of the proposed rule in the Federal Register, which is expected shortly. The proposed rule would also apply to securities issued after that publication date that are backed by revenue from private transfer fees regardless of when the covenants were created.

Published in: on February 4, 2011 at 11:18 am  Leave a Comment