Fannie: MCM Changes Set for This Summer

Fannie Mae has announced that many changes to its MyCommunityMortgage product line -- including 40-year mortgages, new adjustable-rate and interest-only options, streamlined pricing, and expanded eligibility -- will go into effect in August and September.The changes, some of which were outlined in May at the Mortgage Bankers Association's National Secondary Market Conference in Chicago, are aimed at expanding the MCM line of affordable housing products. The government-sponsored enterprise said, for example, that standard whole-loan commitments and mortgage-backed security pool purchase contracts for delivery of MCM first-lien fixed-rate mortgages (and certain ARMs) will be offered beginning Aug. 1. Streamlined pricing that reduces the number of options requiring different guaranty fees or whole-loan pricing will also become available on Aug. 1, along with commitment and delivery options for 40-year loans. Several MCM IO options will be added as of Sept. 1. Numerous other MCM changes are presented in Fannie Mae announcement 06-07, "Community Lending Enhancements -- MyCommunityMortgage." Fannie Mae can be found online at http://www.fanniemae.com.