2nd Home & Investment Property Purchase Limit Suspended

Logo for the Federal Housing Finance Agency

The Federal Housing Finance Agency (FHFA) and the U.S. Treasury Department jointly announced this week that they agreed to suspend certain provisions added in January 2021 to the preferred stock purchase agreements (PSPAs) that govern Treasury’s support for Fannie Mae and Freddie Mac.

One of the key provisions suspended includes the limit on loan purchases for second homes and investment properties. There has been a 7 percent cap on these.

FHFA will consult with Treasury on the scope of the review and on any recommended revisions to the PSPA requirements.

Additionally, FHFA is reviewing the Enterprise Regulatory Capital Framework and expects to announce further action in the near future.

The California and Nevada Credit Union Leagues will update credit unions on any further developments.

View the letter agreement for Fannie Mae here. View the letter agreement for Freddie Mac here.

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