Is Fannie Mae Getting Too Stingy?

Battery Park City
Battery Park City

Many borrowers with existing mortgages are set to get a big break, thanks to the Obama administration's new support for forgiving loan principal, but it's getting tougher out there for new customers to get a mortgage. The latest to strike out are buyers trying to purchase apartments in New York's ritzy Battery Park City.

Crain's New York Business reports that Fannie Mae is currently not buying home mortgages for Battery Park City condos and co-ops. That effectively means that buyers there can't get mortgages. As a result, sellers can't unload their apartments unless someone comes in with an-all cash offer. With one-bedroom apartments selling in the $500,000s, Fannie's freeze-out of Battery Park City has brought the sales market there to a near halt.