In a week full of big news items, the announcement by Fannie Mae on Wednesday that it is tightening standards on second homes and investment properties has been widely read and shared by our audience.
Per its agreement with Treasury, Fannie has a 7% limit on its acquisition of single-family mortgage loans secured by second home and investment properties. And now starting April 1, Fannie will require all second homes to be underwritten with DU, receive an approve/eligible recommendation and be delivered as a DU loan.
Which led me to wonder: How many of these kinds of loans does a lender typically do, because we know that demand for this kind of property boomed over the last year. Helpfully, the MBA's Chart of the Week looks at the share of mortgage applications to purchase or refi a second home or investment property.
Focusing just on the purchase apps for February 2021, the MBA reports that the number of second-home applications were up 37% compared to February 2020, and investor applications were up 110.6%. For context, overall applications were up 26.8% for the same time period.
Which explains why our readers are closely watching these developments with the GSEs. We'll be sure to keep you posted as new guidance is issued.
Today's HousingWire Daily interview features a crossover episode from HousingWire's Housing News podcast. In this episode, Danielle Samalin, CEO of Framework Homeownership, discusses the importance of fair housing, and how homeowners can protect their biggest and most valuable investment toward wealth creation.
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