Apparrently the Federal Housing Finance Agency (FHFA), which oversees Fannie and Freddie, has restricted mortgage lending opportunities for homeowners who live in municipalities that offer home energy retrofit programs. FHFA cited the basis of their decision to be that some retrofit programs present significant safety and soundness concerns. To read the letter from FHFA detailing this restriction, please click here. Yet, if you read the letter, it appears that the main problem is not safety and soundness, but instead lien priority. FHFA does not want Fannie and Freddie to loose their priority position because these programs are funded by local municipalities and may consequently jump the general first in time, first in right rule. The main take away for purchasers and agents is to be careful when seeking a Fannie or Freddie loan where a retrofit program is available.

Don't forget to register for the next Commercial Real Estate Class in Bethpage. Advanced Registration Required. Date of class is July 22nd.

My firm gets questions everyday about what is permissible when working as a real estate agent. To answer the question, I first see the New York Real Estate Licensing Law that can be found by clicking here. Next, I check previous decisions on the issues by clicking here. After you determine the law and precedents you can determine what is permitted. Remember, New York State governs your license, not LIBOR. So, before you worry if your acts are okay pursuant to LIBOR ethics (which are important to check as well), focus on the rules of the Department of State because without your license, you must switch jobs.