First Place in program to sell foreclosed homes

The home loans don’t require mortgage insurance or appraisal fees.

STAFF REPORT

WARREN — First Place Bank is one of five lenders nationwide chosen to participate in a new program to sell foreclosed homes.

Fannie Mae, a government-sponsored corporation that buys mortgages, has created a pilot program called HomePath to help buyers purchase its inventory of foreclosed homes. Of the 25,000 foreclosed properties eligible for the program, nearly 500 are located in Ohio.

The program will help Fannie Mae decrease its inventory of foreclosed homes, while also giving buyers financing options, said Bruce Wenmoth, corporate executive vice president of First Place retail lending.

One of the target groups is first-time home buyers who have decent credit but not much of a down payment, he said.

“It’s a great way for a first-time home buyer to enter the market,” he said.

The down payment of at least 3 percent can be funded by savings, a gift, a grant, or a loan from a nonprofit organization, government agency or employer. No mortgage insurance or appraisal fees are required, and loans may include renovation costs.

First Place is offering buyers same-day pre-approval for HomePath loans, with a choice of fixed or adjustable rates.

Wenmoth said HomePath also is targeting increased purchases by investors. Part of the program is allowing investors to obtain Fannie Mae financing for up to 10 properties, instead of four.

“We believe this program will benefit our communities as a whole,” Wenmoth said. “The more quickly a property sells, the better it is for the neighborhood and surrounding property values overall.”

He said he thinks other lenders will be added to the program eventually. For now, Fannie Mae wants a small group of lenders to evaluate its effectiveness and recommend improvements.

Wenmoth said First Place was selected because it sells a significant amount of mortgages to Fannie Mae, but its delinquency rate is half of Fannie Mae’s average.

For more information or to apply for a HomePath loan, customers may call First Place at (800) 300-8013. The HomePath Web site provides additional information, as well as the ability to search for local properties, at www.fanniemae.com/homepath.