Under previous rules, when an employee of a company accepts a new position which requires relocation, and the move requires that a partner or spouse leave their current job, Fannie Mae would have counted for at least part of that person's income when reviewing an application for a mortgage.
Under the new rules, Fannie Mae will no longer take into account any portion of the person's income; now referred to as the "trailing spouse". That person will actually have to obtain employment for their income to be considered as part of the application.
A spokesperson for Fannie Mae sited the current state of the economy and current job market as reasons for the enactment of the new rules. The new procedures are intended to further secure interest in safer underwriting of loans.
A representative for Worldwide ERC, an international trade association which represents the employee relocation industry comments that these recent adjustments by Fannie Mae will add increased complications to an already difficult relocation environment. Couples who are faced with relocation and the need for one half to find new employment may find themselves renting for longer periods of time than previously expected, keeping them out of the housing market.
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