Fannie Mae changes on investment property mortgages effective 4/1

[Chris Schorre]

Hi everyone, I was just speaking to a mortgage broker and he revealed some chilling news that was released on March 10 by Fannie Mae (Google Lender Letter LL-2021-08.) As a condition of bringing Fannie Mae back to its pre-2008 operational status, the US government is requiring Fannie Mae to reduce the percentage of single family loans secured by investment and second home properties to 7%. I am told that it's around 9% now. This change takes effect on April 1, 2021 and my mortgage broker said he expects interest rates on these types of loans to spike by 1% or more. That would obviously be a huge blow to the 1 to 4 investment property market. Has anyone else heard about this and been "rubbing their crystal ball" to speculate what might happen post-April 1?