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43 » VISIT US ONLINE @ DSNEWS.COM HOMEOWNERSHIP STILL HOLDS PROMISE FOR NINE IN 10 AMERICANS Even as the aftermath of the housing crisis continues to show in the market, a new survey reveals the vast majority of Americans still regard homeownership as a "highly desirable goal." In findings released Tuesday, COUNTRY Financial revealed 89 percent of Americans in its most recent Security Index survey feel that buying a home is a key part of achieving the American Dream despite their recent memories of the crash. Even more promising, 64 percent of respondents expressed belief that owning a home is an attainable goal for a typical middle- income family, a significant improvement over last year, when just 41 percent said the same. "We're very encouraged that so many Americans feel optimistic about home ownership and view it as a realistic and achievable goal," said Joe Buhrmann, manager of financial security support at COUNTRY Financial. "An improving economy and labor market might be helping to lift Americans' spirits and place buying a home closer within reach." While the survey showed homeownership is an important goal for most correspondents regardless of age or income, it did reveal a generational split on opinions regarding whether or not that goal is achievable. Respondents among the ages of 30–39 and ages 50–64 were most likely to be negative in that regard, with 26 percent and 20 percent (respectively) saying owning a home is not an attainable goal for a middle-income family. ere was also an age division when it came to respondents' desire to own a home. Among non-homeowners, a quarter of those under age 30 and a fifth of those ages 50–64 said they have no interest in owning a home. While some analysts have observed a culture shift away from homeownership among millennials, all age ranges have their own reasons to be reluctant, Buhrmann says. "While nearly everyone pictures a home as the American Dream, reality often looks different," he said. "Younger Americans are more likely to reject the idea of homeownership. Yet, the financial challenges of buying a home can affect those of any age." In fact, for those who don't own a home at the moment, the survey found financial limitations were some of the biggest hurdles: 14 percent cited a low credit score as their primary obstacle, while lack of down payment (13 percent) and local home prices (12 percent) were also commonly cited. In its own housing survey released Monday, Wells Fargo found similar concerns about homebuying, with 30 percent of respondents saying only people with high incomes can get a mortgage right now and 64 percent saying only those with a very good credit score can qualify. "It is important for prospective homebuyers to feel empowered to ask lenders and real estate agents questions about available options, such as down payment assistance or FHA (Federal Housing Administration) or VA (Veterans Affairs) loans for veterans," said Franklin Codel, head of Wells Fargo Home Mortgage Production. "Informing prospective homebuyers about their options is the first step toward helping them realize their goals." FANNIE MAE RELAXES WAITING PERIOD FOR DISTRESSED BORROWERS Fannie Mae recently released a report revising the waiting periods for distressed borrowers with a derogatory credit event such as a foreclosure, bankruptcy, short sale, or deed-in-lieu of foreclosure on their credit history to obtain a new loan. For borrowers with a short sale or deed- in-lieu of foreclosure on their record, Fannie Mae's new mandated minimum waiting period to become eligible for a new loan is four years. e time is shortened to two years if there are extenuating circumstances. According to Fannie Mae, extenuating circumstances are defined as "nonrecurring events that are beyond the borrower's control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations." If a borrower has a foreclosure on his or her credit record, the new minimum Fannie Mae waiting period is seven years. Under extenuating circumstances, that period is shortened to three years with some additional requirements for up to seven years. For those with a bankruptcy (chapter seven or 11), the waiting period is four years (two years with extenuating circumstances). For distressed borrowers with a chapter 13 bankruptcy, the required waiting period is now two years from the discharge date and four years from the dismissal date. If there are extenuating circumstances, the waiting time from the dismissal date is shortened to two years. If there are multiple bankruptcy filings on a borrower's record, the waiting period for a new loan is five years if there has been more than one filing in the previous seven years. Under extenuating circumstances, the waiting period is cut to three years from the most recent dismissal or discharge date. Fannie Mae said in the report that it is "focused on helping lenders to provide access to mortgages for creditworthy borrowers while supporting sustainable homeownership" and that the new policy "provides opportunities for borrowers to obtain a loan to Fannie Mae's maximum LTV (loan-to-value) sooner after the preforeclosure (short) sale or DIL." e new policy is effective for loans with application dates on or after August 16, 2014. Under the previous policy, the standard waiting period for borrowers with a derogatory credit event was two years with a maximum 80-percent LTV ratio; four years with a maximum 90-percent LTV ratio; or borrowers were eligible for a new loan after a standard seven-year waiting period. For borrowers with extenuating circumstances, the previous waiting period was two years with a maximum 90-percent LTV ratio. REO activity declined nationwide by 12 percent quarter-over-quarter in Q3 2014, according to RealtyTrac. KNOW THIS

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