What it really means is many lenders who expect to sell the loan on to Fannie Mae or any other investor who uses the Fannie Mae guidelines will not be able to do so when the borrower has 10 or more mortgages in their name.There are lenders who do not sell on their loans and they still have limits on what they will do with any one borrower.

It looks to me like if I did that, the net income/loss would be recorded on schedule C instead of schedule E, which seems to not be subject to the passive loss limits.

So far, investments have been limited to the properties that we have occupied.

(Downside is limited buyers with $5K down payment)Or potential short sale candidate.......2).

The value is limited if the bank does not report.

As an unlicensed person, you are slightly limited in what you can do, but you don't have to be licensed to ask questions!

Some will go to 100 loans per investor.Or take them to the commercial lenders who will provide a blanket loan solution.You can not take them to traditional lenders who expect to resell the loans as there is a limit of 10 loans in the resale market.John Corey

However, your options are more limited as to loan terms, loan-to-value, and other things.

nothing to weird that will limit buyer pool.

Hence the proposal is mostly going to matter in some states.A jumbo mortgage is the label used for loans above the limit.