Latest / The Loan Daddy Podcast / 014 - Freddie Mac Removed the Age Rule on Asset Depletion Mortgages: What Agents Must Know

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014 - Freddie Mac Removed the Age Rule on Asset Depletion Mortgages: What Agents Must Know · The Loan Daddy Podcast

• 0:00
  SPEAKER_00: The agents who are aware of this are going to close one to two, maybe even more, transactions as a result of knowing this over the next 12 months.
• 0:10
  SPEAKER_00: What's up everybody?
• 0:11
  SPEAKER_00: Welcome to the Lone Daddy Podcast, episode 14.
• 0:13
  SPEAKER_00: There's a lot to jump into today, and we'll get to all of it.
• 0:16
  SPEAKER_00: I want to let everyone know that we started this podcast for one reason and one reason only.
• 0:20
  SPEAKER_00: It's to help serve real estate agents.
• 0:22
  SPEAKER_00: That's it.
• 0:23
  SPEAKER_00: And there are a lot of different ways that we do that through these episodes.
• 0:26
  SPEAKER_00: If you just look at the last two episodes, for example, we did one on different changes for co-ops and condos that all agents have to be aware of.
• 0:33
  SPEAKER_00: And then we also did one on strategies and tips to help those who are tackling FISBOs and going after FSBOs.
• 0:40
  SPEAKER_00: So please check out those episodes and I'd love to get your feedback on those and any other topic that you want us to go over.
• 0:46
  SPEAKER_00: Because what all this boils down to is figuring out ways that you can gain an edge on your competition.
• 0:52
  SPEAKER_00: These episodes are filled with little hacks and tricks that you can start using today to help people.
• 0:58
  SPEAKER_00: Knowledge is power.
• 0:59
  SPEAKER_00: The more tools that you have in your toolbox, the more buyers and sellers that you'll be able to help and serve.
• 1:04
  SPEAKER_00: Which brings us to this episode.
• 1:06
  SPEAKER_00: Every so often, new guidelines and new changes will come out in the mortgage space that can help real estate agents, but it's never widely distributed and advertised to real estate agents.
• 1:17
  SPEAKER_00: So it might take a long time for agents to be aware of a different guideline change, or they won't be aware of it until they're involved in a specific transaction that relates to that change, and then they're aware of it.
• 1:29
  SPEAKER_00: But today, I want to talk about one of the most significant changes that we've seen in the mortgage space in a long time that can help you right now.
• 1:37
  SPEAKER_00: And this is a way for you to be proactive and not reactive.
• 1:40
  SPEAKER_00: And I'll bet that most real estate agents out there aren't aware of this change, this guideline change through Freddie Mac that was announced last week.
• 1:50
  SPEAKER_00: I'll bet most real estate offices or real estate managers did not distribute this information via an email or have a meeting, a Zoom meeting, an in-person meeting talking about this.
• 2:00
  SPEAKER_00: Even though I believe this is such a big change that for the agents that are aware of it, and now you're gonna be one of them just watching this, the agents who are aware of this are going to close one to two, maybe even more transactions as a result of knowing this over the next 12 months.
• 2:17
  SPEAKER_00: That's how significant and important this is.
• 2:20
  SPEAKER_00: So let's get into it and don't worry, it's not overly complicated.
• 2:23
  SPEAKER_00: You'll be able to follow.
• 2:24
  SPEAKER_00: So Freddie Mac updated their guidelines to help those with significant assets who don't have an income stream coming in.
• 2:31
  SPEAKER_00: Under the right circumstances, eligible assets can be used to calculate a monthly income to help someone qualify for a mortgage.
• 2:40
  SPEAKER_00: Now, the changes with this guideline are huge.
• 2:45
  SPEAKER_00: And I want to explain why.
• 2:46
  SPEAKER_00: There are two main reasons.
• 2:48
  SPEAKER_00: Number one, the program has always existed, but it's always been reserved for those who are of retirement age only.
• 2:54
  SPEAKER_00: So the thinking was you worked all your life, you're retired now, you don't have consistent income coming in, but you're probably sitting on assets.
• 3:02
  SPEAKER_00: So why would we penalize someone for that for working all their life and having those assets?
• 3:08
  SPEAKER_00: Let's figure out a way to get that person a mortgage.
• 3:10
  SPEAKER_00: So they can derive an income based on someone's assets.
• 3:14
  SPEAKER_00: And again, this is always this is historically only been reserved for those who are over 62 and a half.
• 3:20
  SPEAKER_00: That age restriction no longer exists.
• 3:22
  SPEAKER_00: That's the change.
• 3:23
  SPEAKER_00: That's one of the big changes here.
• 3:24
  SPEAKER_00: And this is massive.
• 3:26
  SPEAKER_00: So think about someone who is a young entrepreneur, again, who may have sold a business.
• 3:30
  SPEAKER_00: Think of someone on the younger side who inherited a lot of money.
• 3:34
  SPEAKER_00: Maybe they lost a parent or a grandparent or they got their inheritance a little bit earlier.
• 3:39
  SPEAKER_00: There are so many different ways that we can talk about this, or so many different clients that you could think of who might fit into this category, but eliminating the age restriction opens up financing opportunities for so many people out there.
• 3:50
  SPEAKER_00: That's the first thing.
• 3:51
  SPEAKER_00: The second thing here is the way that they're calculating the income.
• 3:56
  SPEAKER_00: So in the past, the way that they used to do it is this: imagine someone has a million dollars of assets.
• 4:00
  SPEAKER_00: They would take the million dollars and they would divide it by 240.
• 4:04
  SPEAKER_00: Take a million dollars divided by 240, that comes to$4,166 a month or$50,000 a year.
• 4:11
  SPEAKER_00: So that$50,000 a year, that's the income we can use in that hypothetical.
• 4:15
  SPEAKER_00: Now they've changed that calculation.
• 4:17
  SPEAKER_00: So now the way that it works is you take the million dollars and divide it by 180.
• 4:22
  SPEAKER_00: That shift changes that monthly income from$4,166 to$55,55.
• 4:27
  SPEAKER_00: Over a year, that comes to$66,660 a year.
• 4:31
  SPEAKER_00: So you went from$50,000 to$66,600 a year.
• 4:34
  SPEAKER_00: So by doing that, your income goes from$50,000 a year to over$66,000 a year.
• 4:40
  SPEAKER_00: That's a 33% increase in one's income based on this chain.
• 4:45
  SPEAKER_00: So again, this will enable us to cast a wider net to get more people qualified for a loan.
• 4:52
  SPEAKER_00: You know, normally when we get these new announcements about changes in mortgage guidelines, it's not helpful to prospective borrowers out there.
• 5:01
  SPEAKER_00: It makes it harder for them.
• 5:03
  SPEAKER_00: This is one of those rare exceptions where it's actually making things a lot easier.
• 5:07
  SPEAKER_00: This is why it's so important and such a big change.
• 5:10
  SPEAKER_00: So, what can you do?
• 5:12
  SPEAKER_00: You know, if I was an agent, there are two things that I would do immediately.
• 5:16
  SPEAKER_00: Number one, I would look at my database and I would look at all the clients who wanted to buy a home but did not buy a home this year in 2026.
• 5:26
  SPEAKER_00: And I would specifically try to center in on the clients who did not buy a home because they couldn't get financing.
• 5:31
  SPEAKER_00: Who are those clients?
• 5:32
  SPEAKER_00: And out of those clients, who couldn't get financing because they didn't have enough income, but maybe they had assets.
• 5:37
  SPEAKER_00: That's the low-hanging fruit right now.
• 5:39
  SPEAKER_00: I would also go back to 2025 and 2024 and I would look for those clients.
• 5:46
  SPEAKER_00: They exist, they're out there.
• 5:48
  SPEAKER_00: I guarantee it.
• 5:49
  SPEAKER_00: The reason I know that is because we have those clients.
• 5:52
  SPEAKER_00: And a lot of us are working with the same people.
• 5:54
  SPEAKER_00: People who are out there in the market who want to buy homes.
• 5:56
  SPEAKER_00: So if we have those clients right now, you have those clients too.
• 6:01
  SPEAKER_00: So now it's just a matter of getting organized, looking at our database, and finding those clients.
• 6:04
  SPEAKER_00: That's number one.
• 6:05
  SPEAKER_00: Number two, I would blast this out and let everyone know about it.
• 6:09
  SPEAKER_00: I would post this on social media.
• 6:11
  SPEAKER_00: I would set up an email campaign and alert my database about this change.
• 6:16
  SPEAKER_00: Now, if you need help with this, follow me at LoneDaddy on Instagram and DM me assets.
• 6:22
  SPEAKER_00: And I will send you marketing materials that you can use today or whenever you message me to let people know about this change and its significance and how it can open up so many opportunities for these prospective buyers out there and enable them to buy a home at a time when rents are reaching an all-time high.
• 6:42
  SPEAKER_00: So, again, I cannot understate how important this is.
• 6:45
  SPEAKER_00: It's such a massive, great change in our industry.
• 6:48
  SPEAKER_00: Now it's important to let everyone know.
• 6:50
  SPEAKER_00: Let's yell about it, let's scream about it, and let's add value to prospective buyers out there about a change like this.
• 6:57
  SPEAKER_00: Okay.
• 6:58
  SPEAKER_00: That's all I have for today.
• 6:59
  SPEAKER_00: Curious to see if anyone has questions on this.
• 7:02
  SPEAKER_00: Please feel free to reach out.
• 7:03
  SPEAKER_00: You can DM me, you can message me here.
• 7:05
  SPEAKER_00: Looking forward to seeing you on the next episode.
• 7:07
  SPEAKER_00: Thank you so much.