Aloha Friday,

Great news this week, we should have another investor underwriting Condo-tel properties by the end of next week. This is great news as the current lending sources are overwhelmed and the turn times are very slow on these specific types of properties. Stay tuned for more on this.

Fannie Mae, the mortgage-finance company under government control, released its third announcement on plans to purchase delinquent loans out of its securities, reducing investor confusion with new details. Under a program unveiled last month, the Washington-based company would purchase about 220,000 of loans from the bonds it guarantees this month, Fannie Mae said late yesterday in a statement posted on its Web site. Buyouts this month will represent “nearly all” mortgages that are delinquent by four months and that back Fannie Mae’s securities with coupons of 6.5 percent or higher.

This announcement could help to keep rates lower as it defines a clear separation between the bad loans and good loans. Investors who want to buy secure Fannie Mae bonds have been hesitant to do so as they were not sure if they were buying in to loans with possible defaults to come. Rates this week are holding steady and look good.

Our turn times on conforming purchases are fantastic. We have closed several purchase transactions in under 25 days start to finish (even with the new appraisal and RESPA laws). If the borrower is super clean and access to the property for the appraisal is no problem, we have been receiving formal approvals in as little as 15 days.

Please let me know up front if there are any special circumstances on transactions you may have. Some issues we have seen recently are HOA delinquencies over 15%, owner occupancy in the condo project under 50%, and seller acquired properties within the last 90 days. We can often times still get the loan through, but sometimes will need a head’s up so we can prepare in advance.

Have a fantastic weekend and Aloha.

www.lahainamaui.com

www.mauirealestatebuyer.com