Is Fannie/Freddie killing the Investor loan?

[Paul Welden]

Fannie/Freddie, through the FHFA, recently announced they will reduce the purchase of investor & 2nd home loans by almost 50% to only 7% of their portfolio. ()

Some lenders have already adjusted their pricing by 200bps, thus making investor & 2nd home loans more expensive to get. 

Do Fannie/Freddie see upcoming risks with investor & 2nd home loans?

Are Fannie/Freddie trying to give owner occupants more opportunities? 

What's the reason behind this conventional loan change? 

Could a lot of investors quit buying properties b/c the mortgage will be too expensive, decreasing the # of buyers in the market, allowing cash buyers and owner occupants to have more opportunities??? 

If that happens, what could happen to real estate pricing/values? 

This could affect investor & 2nd home areas such as Phoenix, Columbus, Cleveland, Tampa, Orlando, Miami, Las Vegas, Charlotte, Dallas, Houston, Colorado Springs, Sacramento, Indianapolis, etc. 

Could this affect the BRRRR strategy? Maybe .... if the refi portion is not done as an owner occupant loan even though the real intention is to not be an owner occupant. Could that be considered mortgage fraud?

Could this help more people to get their 203k offers accepted if more investors exit the real estate market?  

If investor mortgage loans get too expensive to make financial sense, what other viable options are there for investors other than HML?

Many questions ... and maybe time will tell us what will happen because of this new conventional mortgage loan guideline. 

I don't know how this will affect real estate, but I do have lots of questions. Hoping others can chime in to share their ideas. 

What are your thoughts?