Effective on or after August 1^st, Fannie Mae is implementing a HUGE change in they way they are handling buyers interested in renting out their current home while purchasing a new home. Up until this pending amendment, sellers were allowed to present a lease signed by the tenants who would be occupying their home. This ticket to ride would then permit the owners to proceed with the process of buying the new one.

However, what translates as tantamount to fraud is that a few of these buyers were leveraging this very "low-doc" strategy to take advantage of the better owner-occupied mortgage rates.  The change now requires that: 

• There be 30% equity in the home
• The signed lease is presented with the receipt from the security deposit
• Proof is provided that this security deposit was debited from the tenant's account and credited to the owner's account.

 This strikes me as a proportionate response and will put a knot in this loophole.