Fannie Returns to Counseling Mandate

Fannie Mae has reinstated mandatory homeownership counseling and education requirement for first-time homebuyers interested in qualifying for Fannie's MyCommunityMortgage loan or nontraditional credit profile customers applying for any other loan type. The goal, Fannie Mae said, is to help borrowers "better assess their options and responsibilities both before and after they purchase a home." The service must be provided in compliance with the National Industry Standards for Homeownership Education and Counseling developed by a national advisory council of industry stakeholders, including Fannie Mae, launched by the NeighborWorks Center for Homeownership Education and Counseling. "In this extraordinary market, we think it is critical to reinstate this requirement and to work with counseling agencies and our lender partners to help homeowners succeed," Fannie Mae president and CEO Herb Allison said in a press release.