Fannie Mae Tightens Standards on Investment Properties
- Source: housingwire.com
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Article Highlights:
The new Treasury amendment means Fannie Mae has a new “7% limit on the acquisition of single-family mortgage loans secured by second home and investment properties.”
The new amendment has prompted changes to Fannie Mae’s eligibility polices to address the Treasury’s new restrictions. Now, all second homes are to be underwritten with Desktop Underwriter and must receive an approval or eligibility recommendation that is delivered as a DU loan.
To comply with the new amendment, Fannie Mae “will be monitoring deliveries of second home and investor loans on a lender-level basis, and will be working with lenders that have excessive delivery volume of these types of loans.”
The selling guide and eligibility matrix are set to be updated in April. Fannie Mae is determining whether they will further update their negotiated terms to limit the risk characteristics for all refinance loans and non-DU purchases.