Fannie Hikes Net-Worth Requirements

Fannie Mae is increasing its net-worth requirements for approved seller/servicers to ensure that its business partners are capable of fulfilling their obligations, the company has announced. The secondary-market agency is also establishing new minimum capital requirements for banks, thrifts, and other customers. "Fannie Mae is imposing additional requirements to protect itself against the material and adverse impact of rapid declines in a lender's net worth," Fannie says in its announcement 08-23. Effective Dec. 31, the minimum net worth requirement is $1.6 million for approved seller/servicers add $2.5 million for new lenders seeking Fannie Mae approval, plus 0.25% of the outstanding principal balance of the lender's portfolio of loans serviced for Fannie. All approved lenders must meet the minimum $2.5 million net worth starting Dec. 31, 2009. "Approved seller/servicers will have until June 30, 2009, to comply with the increased lender's adjusted-net-worth requirement," Fannie says.