Sunday, December 17, 2017
Home and Garden

Community Living: FNMA refers to lender documents

FNMA refers to lender documents

Q: Our homeowners association covenants and many others reference "FNMA Lending Guide, Chapter Three, Part 5, Insurance Requirements" regarding liability insurance and fidelity bond coverage. Where can I get a copy? Is this still a good reference?

A: When a bank or mortgage lender takes a mortgage, they give money to the seller. If that was the end of the story, our banks and mortgage lenders would run out of money to lend. To help solve this problem, the government and private groups will buy mortgages (secondary market) from the banks and lenders and give the bank or mortgage company money for them to lend again. This secondary market includes Freddie Mac, Fannie Mae (FNMA), and other secondary lenders. Their purpose was established to buy mortgages to re-enter money into the market. To carry this further, you need to go back and study the government's involvement in the banking industry. I will start with the "big depression" in 1933 but there were other laws from the beginning of our country.

There have been many other government acts before and after this act to help control the lenders. The Glass-Steagall Banking Act (GSBA) became law in 1933. That act regulated the banks to only allow certain lending and banking operations. At that time we had thrift banks, commercial banks, credit unions (1934), saving banks, savings and loan associations, and many other named financial institutions. In 1999 the government deregulated banks by repealing the GSBA, and many of the banks were allowed to conduct other businesses beyond banking such as insurance sales and stock transactions to name a few. The changes to the banking industry have resulted in several bank bankruptcies and failures. Your documents refer to FNMA mortgage application package because most lenders use the FNMA forms. It is not the law to use FNMA mortgage guidelines, just a policy, but your documents do require it as a protection to future buyers and make obtaining a mortgage simpler. This means that what was the banking industry a decade ago is not the same as we see today. But the framework as mentioned in your documents is still there. The requirement is nothing more than certain mortgage lender requirements, the loan documents that you can get at any bank.

Two lots, two fees and two votes

Q: I have a question regarding the number of votes a household is entitled to. We are a small community, 42 homes. The question is, if one homeowner now owns two homes, do they get two votes or just one?

A: You would need to read your document to see how the voting is counted. Normally it is per lot, or in the case of condominiums, per unit. There are some exceptions, but they are rare. You have 42 homes (lots), and my guess is that your documents say each lot has one vote. Therefore, if an owner owns two lots, he would be allowed two votes. He must pay a fee for each lot, and that would give him the rights for both lots.

Comments
Hometown Pasco for Dec. 15

Hometown Pasco for Dec. 15

We want your news!Hometown Pasco is devoted to everyday life in our county, whether itís snapshots from your family reunion, recreational sporting event, news from your last club meeting or just a few lines thanking someone for a job well done. You ...
Published: 12/13/17
Hometown Hernando for Dec. 15

Hometown Hernando for Dec. 15

We want your news!Hometown Hernando is devoted to everyday life in our county, whether itís snapshots from your family reunion, recreational sporting event, news from your last club meeting or just a few lines thanking someone for a job well done. Y...
Published: 12/13/17
Timely Tendings: Beware of buying or gifting invasive plant species

Timely Tendings: Beware of buying or gifting invasive plant species

Beware of buying or gifting invasive plant speciesPlants make great gifts to give and receive. But .?.?. beware invasive species lurking in local garden centers or nurseries. Many invasive species are still commonly sold and if you plant them in your...
Published: 12/08/17
Updated: 12/12/17
Review: Amazon wants a key to your house. I did it. I regretted it.

Review: Amazon wants a key to your house. I did it. I regretted it.

I gave Amazon.com a key to go into my house and drop off packages when Iím not around. After two weeks, it turns out letting strangers in has been the least-troubling part of the experience.Once Amazon owned my door, I was the one locked into an all-...
Published: 12/08/17
Want the perfect Christmas tree? We asked an expert for help

Want the perfect Christmas tree? We asked an expert for help

Lights, ribbons, tinsel, flowers — how do you get that perfect look? We asked designer Ken Neddo of Classic Florals in St. Petersburg to help with this yearly decorating event. † * What do you see as the general trends in Christmas tree deco...
Published: 12/05/17
Timely Tendings: As holidays approach, find the right plants; keep an eye on edibles in the garden

Timely Tendings: As holidays approach, find the right plants; keep an eye on edibles in the garden

Get holiday plants: trees, poinsettias and cactiLiving Christmas trees are a fun, lasting way to celebrate the holiday season that can then be planted to provide a lifetime of enjoyment. Unfortunately a commonly sold plant for this is the Norfolk Isl...
Published: 12/01/17
Updated: 12/05/17
5 first-time homebuyer mistakes to avoid

5 first-time homebuyer mistakes to avoid

Thinking about buying your first home? Before you can unlock the door to homeownership, you have to take some important first steps. From finding the perfect location to financing your purchase, shopping for your first home has challenges that go bey...
Published: 11/30/17
Updated: 12/05/17
Hometown Hernando for Dec. 8

Hometown Hernando for Dec. 8

We want your news!Hometown Hernando is devoted to everyday life in our county, whether itís snapshots from your family reunion, recreational sporting event, news from your last club meeting or just a few lines thanking someone for a job well done. Y...
Published: 11/29/17
Updated: 12/07/17
Plan and budget for a good return on your garden investment

Plan and budget for a good return on your garden investment

The first of the 2018 seed catalogs will be arriving soon in the mail, signaling the start of another growing season. Savvy vegetable gardeners pore over the pages while choosing plants and drafting budgets. Planning ahead provides healthier returns ...
Published: 11/28/17
Updated: 12/05/17
Digginí Florida Dirt: Gardeners share suggestions for holiday gifts

Digginí Florida Dirt: Gardeners share suggestions for holiday gifts

If I had to choose just one garden tool to be shipwrecked with on an uninhabited island, it would be my Felco 2 pruners. They clip anything up to about a half-inch diameter ó even thicker when I push it, which I do.Even my daughter marveled when I qu...
Updated one month ago