Natural Gas Drilling conflicts with Mortgages

If this doesn’t beat all. Obama will get a twofer on this one. First, he will put a good hit on new gas leases as it may conflict with Mortgages, so they are purporting, and hey, Fannie and Freddie may stop buying them as well. Yes indeed, Agenda 21 is moving forward at a record clip. Am I the only one with the tin foil hat on this one and perceives the outcome? Tell me it isn’t so.  Agenda 21 the ultimate plan for you and the world coming to your town soon. I cut out a few of the high lights of the Times piece, wander over if you have the stomach for it. Fannie, Fannie, Fannie, you are so bad.

…over the past 10 years, as natural gas has become increasingly important to the nation’s energy future, Americans have signed more than a million of these leases.

…some banks have become reluctant to grant mortgages on properties leased for gas drilling. At least eight local or national banks do not typically issue mortgages on such properties, lenders say..

 Another will make home loans only to people who expressly agree not to sign a gas lease as long as they hold the mortgage.

 But many of the leases do constitute “technical defaults” on the mortgages, lenders say, and will likely result in new rules from local banks and additional hurdles to getting a home loan or refinancing a mortgage.

If local banks do not require that leases comport with mortgage rules, Fannie Mae and Freddie Mac may stop buying mortgages from these banks, Mr. Manzo said. Other experts warned that the two institutions, or investors who bought mortgage-backed securities, may also force local lenders to buy back noncompliant mortgages.

It is “very difficult to obtain financing due to the potential hazard” as well as “unknowns,” an official at Wells Fargo wrote to a mortgage broker in northeastern Pennsylvania in April 2010

Drilling officials offered a different view. They said that the income from lease bonuses and gas royalties actually enhanced property values, and that mortgage lenders welcomed gas drilling because it provided borrowers with extra income that could be used to pay off their mortgages.

Full Story at New York Times

If you want to find out if Fannie holds your mortgage, here is a link: http://www.fanniemae.com/loanlookup/

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