Career Management Firm Comments On Fannie’s ‘Trailing Spouse’ Ruling

Posted by Orb Staff on July 08, 2009 No Comments
Categories : Residential Mortgage

Group, a global career management firm that specializes in career and relocation transition support services, reacted today to recent Fannie Mae rulings, which state that transferees applying for mortgages can no longer include the co-borrower's income, unless employment in the new location is secured and documented. According to the Fannie Mae [link=https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0919.pdf]Income Selling Guide[/link], Version B3-3.2-07, the section titled "Trailing Secondary Wage Earner's Anticipated Income" states, "Because trailing secondary wage earner income is based on projected employment and income that a borrower may earn in the future (but is not currently earning), Fannie Mae is eliminating the trailing secondary wage earner income policy from the Selling Guide." "This is major concern, as transferees and their families are already scaling back on the home in the new location due to loss of equity in the old home," said IMPACT Group President and CEO Lauren Herring in a statement. "The worst scenario would be for the family to reconsider the relocation altogether." According to the Worldwide Employee Relocation Council's [link=http://www.worldwideerc.org/Resources/Research/Pages/2009-US-Benchmarking-Survey.aspx][u]2009 Benchmarking Study[/u][/link], 35% of organizations are experiencing "moderate" problems with employees' reluctance to accept transfers. Some of the major reasons cited for employees' reluctance to relocate were due to slowed real estate appreciation/depressed housing market at old location, employee/family resistance to move and spouse reluctance to leave his/her job. "Trailing spouses cannot wait to start looking once they have moved," Herring added. "The job search must commence right after the [relocation] offer has been accepted." The current national average for a job seeker to find employment is approximately 23 weeks. Job seekers in an IMPACT Group relocation job search support program land employment in approximately 15 to 21 weeks. SOURCE: IMPAC

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