fannie mae - Can I bid as owner occupier ?

[Matthew Thomas]

Hi,
Where could one find the fannie mae requirements for owner occupier bidding?

I am looking for a second home in a beach community where I would split my time between my existing residence and the new house. I would be at the second home at least 4 days a week. On the other side I am interested in this as an investment property and generating a decent return in a 1-2 year period.

I've been trying to pick up a fanne mae reo and have lost the last 2 houses I made offers on to owner occupier bids, 4 more my offer was never was looked at since it was outside the 15 day first look period. It seems that anything decent to renovate and generate quite a bit of equity fast goes quick. Just this last week the house we put in an offer was a complete gut job went to a cash offer, owner occupied. NO ONE could could have lived there and renovated.

Could I place my offers as owner occupier?

[Andy Chu]

This is the revised memo from Fannie Mae directly

FRAUD REVIEW: First Look™ Misrepresentations

Scenario
789 Elm Street, a Fannie Mae REO property, was listed on the market for only four days when the listing broker, Andrew, received an offer for this property. Andrew learned in corresponding with the buyer that she intended to use the property as a vacation home and not a primary residence; however, Andrew neglected to communicate this information to his Fannie Mae Sales Representative and allowed the buyer to submit the offer as an owner occupant. Motivated by his interest to close the deal without additional delays due to First Look™ restrictions, Andrew had the buyer sign the Owner Occupant Certification and indicated this in Section 4 of the Real Estate Purchase Addendum as well.

Analysis
This sequence of events represents a type of fraud categorized as "First Look Misrepresentations." Only owner occupants purchasing as a primary residence and buyers using public funds can purchase a property during the First Look Marketing Period, which corresponds to the first 15 days of listing in all states except Nevada (which has a 30 day Marketing Period). Investor offers may only be considered after the first 15 full days on the HomePath website, when the First Look™ countdown clock is no longer displayed. Fannie Mae defines a buyer purchasing a property for use as a second home as an investor and therefore, ineligible during the First Look™ marketing period. Brokers are responsible for accurately representing the buyer type and may be directed to question the buyer's motivation for occupying.

In the case described above, the listing broker was obligated to submit the offer as an investor offer, notify the buyer that the offer was rejected, and document this activity in the system. Once the First Look™ countdown clock no longer displays on Day 16, the broker should notify the buyer's agent to resubmit if the property is still available.

Resolution
Fannie Mae does not tolerate brokers or their agents participating in any sort of fraudulent behavior. Internal teams are dedicated to monitoring and investigating reports or evidence of suspicious activity. In the event it is uncovered that a Fannie Mae broker is a party to any such prohibited conduct, the broker may be subject to termination and the case may be reported to the agency responsible for investigating and prosecuting such cases.

ACTION!

Understanding First Look™
Brokers are not only responsible for understanding and complying with the timelines and regulations of the First Look™ program, but also for supporting and communicating the "spirit" of the initiative. The First Look™ program continues to be an important contributor in the mission to stabilize neighborhoods. By allowing this period for owner occupants, some non profits, as well as public entities and their partners to submit offers and purchase properties without competition from investors, Fannie Mae encourages home ownership and helps to build stronger communities.

To learn more about the First Look™ program, please review the REO Sales Guide and training materials available on the HomePath resources page. If you have any questions, contact your Fannie Mae Sales Representative or Asset Manager.

Contact Fannie Mae
Suspected REO fraud must be reported to Fannie Mae immediately. It is your responsibility as a broker or agent of Fannie Mae to report suspected REO fraud. Following are two avenues for reporting:
1. Phone Fannie Mae at 1-800-7FANNIE (1-800-732-6643)
2. Report the information via e-mail: [email protected]
For more information, additional resources are also available Fannie Mae's Mortgage Fraud Resources page. To navigate to the page yourself, visit www.efanniemae.com and click on "Preventing Mortgage Fraud" in the bottom right hand corner of the web page.
In addition to reporting the suspected fraud to Fannie Mae, we encourage you to report the information to your local real estate board or state licensing authority. Your assistance in fighting REO fraud is greatly appreciated.