Freddie Mac And Fannie Mae Four Loan Limit - Will It Chill Foreclosure Buying And Real Estate Market
From the AJC, many people believe that imposing a four loan limit on Freddie Mac and Fannie Mae mortgages will lead to fewer buyers of foreclosed properties and an extension of the recession. See Freddie Mac Bulletin.
Real estate investors decry four-loan limit; New rule restricts number of loans backed by Fannie Mae, Freddie Mac, by D.L. Bennett (free reg. req'd).
The new policy, which limits to four the number of real estate loans by one person that will be backed by mortgage giants Freddie Mac and Fannie Mae, has spread to most local and national lenders. Experienced investors, frustrated and angry, complain the limits prevent them from buying bargain homes and possibly helping resolve the mortgage crisis... The new policy, which went into effect Dec. 1, was designed to keep small-time investors from getting in over their heads and losing numerous rental properties to multiple foreclosures. The previous 10-loan limit was easier to get around, investors say...
“The four-house rule is going to keep us in a recession longer,” said Tom Hutchens, a Dunwoody mortgage broker and real estate investor. “It’s going to keep qualified buyers out of the market.” ..
Can anything be done about this? Will you be willing to sue Fannie Mae to get them to stop using this discriminatory rule and stop their antitrust behavior? Can a class-action suit of real-estate investors make a difference?