My New Blog

James Lockhart, who runs the agency, says there's been some "re-thinking" underway on the controversial limits on the numbers of rental properties investors can own if they're seeking new financing.  Both Fannie Mae and Freddie Mac have imposed a four-unit limit, reversing their previous investor maximum of ten units.

The rationale for the change, according to the agencies, was their belief that investors who own higher numbers of rentals pose a greater risk of default, foreclosure and loss for the companies.

The restriction effectively shut out many small investors from Fannie's and Freddie's standard programs and pushed them into much higher-cost financing.  Lockhart said that raising the selling guide ceiling on investor loans is under active consideration.  Easing the availability of loan money for investors could mean purchases which would lower the current inventory, one of the steps essential to the housing recovery.