GOOD NEWS for Investors -- At Last!

Mortgage and Lending NMLS #94045

As of March 1st,  Fannie Mae is changing the maximum number of mortgaged properties allowed per borrower from four properties (reduced in 2008) back UP to ten properties  Obviously this will help restore the ability of investors to get conventional mortgages in this market.

Many local investors in NW Washington who have been salivating over the selection of great home buys today will be much relieved by this news. Perhaps our local stimulus effort is to be the bearers of good news! With the Stimulus Bill getting a boost today, mortgage rates actually jumped up .25%. We expect things to settle again next week. Now is not the time to dither.

Pass it on. Susan susan templeton   360.220.2997  

Fannie Mae logoSelling Policy Updates

Multiple Mortgages to the Same Borrower and Reserve Requirements Changes

Fannie Mae has issued the following Announcement:

  • Announcement 09-02, Updates to Multiple Mortgages to the Same Borrower Policy, Reserve Requirements, Reserves Definition, and Form 3170

Multiple Mortgages to the Same Borrower
To support prudent lending for housing investment, Fannie Mae is changing our current limit of four financed properties per borrower. We will allow five to ten financed properties per borrower, with certain eligibility and underwriting requirements, including a 720 minimum credit score and 70-75% maximum LTV/CLTV/HCLTV (depending on the transaction and property type). The requirements apply to any loan being delivered to Fannie Mae, regardless of whether Fannie Mae is the investor on the borrower's other mortgages.

Second home and investment property loans to borrowers with five to ten financed properties will be accepted for whole loan purchase or delivery into MBS with purchase dates on or after March 1, 2009, and new Special Feature Code 150 will be required at delivery. 

Reserves Definition and Policy Requirements
We also are updating our definition of liquid financial reserves to include all components of the monthly housing expense - which will now be known as PITIA - including homeowners' association dues, special assessments, ground rents, and subordinate financing payments.

Assignment of Rents
Investment property borrowers are required to execute a Multistate 1-4 Family Rider (Assignment of Rents) (Form 3170, or 3170.53 for Puerto Rico) to authorize transfer of rental revenues to the lender. We are reiterating this existing requirement, and have updated the Summary documents for the Riders to delete the requirement for rent loss insurance.

To view this  eFannie Mae email as a web page, go here. 

susan templeton washington license 510-LO-31434  branch 10-MB-24707-50145 copyright 2009 susan templeton loannetter

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Interest rates and products are subject to change without notice and may or may not be available at the time of loan commitment or lock-in. Borrowers must qualify at closing for all benefits. Loannetter is a private brand owned and copyrighted by Susan Templeton.


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Tony & Darcy Cannon
Aubrey and Associates Realty - Layton, UT
The C Team

Susan, that is good news!  Hopefully this will get many investors off the fence!

Feb 06, 2009 05:19 PM #1
Susan Templeton
Bellingham, WA

Hi Tony and Darcy! I am relieved we have some real optons for owners of multiple homes...the 4 mortgage limit was making things pretty difficult although our portfolio investors loved all the extra attention! Susan

Feb 06, 2009 05:38 PM #2
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