We have been informed that the FHFA has suspended the increased risk enhancement notice published by the GSEs (Government Sponsored Enterprises, aka Fannie/Freddie) on March 10th of this year, which limited acquisition to 7% per aggregator for investment and second home properties. *
When this limit was imposed earlier this year, we saw interest rates for investment and second homes jump within 24 hours by almost a full percentage point! As of yesterday, that 7% limit has been suspended.
Why is this such BIG NEWS? We expect rates to start coming back down. We can’t say for sure yet exactly what that will look like, but I’m predicting that we’ll see a rate improvement of at least 0.5%! We should find investment property rates back in the 3s over the next few days.
Please understand that if you have a rate currently locked, that is your rate. The only way to relock at lower rates would be to let your existing rate lock expire and wait a full 30 days before relocking would be available.
To learn more andsecure your mortgage rate, call us today!
*The March 2021 amendments to senior preferred stock purchase agreements with Treasury imposed additional risk criteria on GSE-acquired loans. One of those restrictions was a 7% limit on GSEs’ acquisition of single-family mortgage loans secured by second home and investment properties.