We heard a rumor (unsubstantiated) a few weeks back that Fannie Mae, Freddie Mac and FHA are contemplating hiking their minimum net worth requirements to $3.5 million from the current $2.5 million. We’re still investigating the lead, but one thing is for certain: for small firms – including brokers that were hoping to convert to ‘banking’ status – such a requirement would be a disaster even if the phase-in period is several years. As politicians from both parties continue to talk about helping small businesses they’re doing things to hurt small mortgage firms. If the minimum net worth bar is moved higher, this latest smack upside the industry’s head would land squarely in the Obama camp.
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