Lenders, real estate agents and condo boards lambaste the GSE for using vague and undefined terminology to determine whether it will purchase mortgages from projects with significant short-term rental activity.

Some sellers may be able to redistribute their sales of investor and second-home mortgages to meet new Fannie and Freddie purchase limits. But many will have to sell fewer of the loans. (Includes two data charts.)

With Fannie already over the PSPA cap on non-owner-occupied loan volume, lenders may have to dramatically reduce their delivery of second-home and investor-property mortgages.

Small lenders believe the GSEs should offer special programs for small servicers and rural appraisals. And like their larger competitors, they don’t like the new PSPAs.

Fannie and Freddie spell out eligibility terms in the wake of the amended PSPAs.

Even though the GSEs actively support small lenders on the single-family side of the house, critics say their multifamily businesses continue to favor larger financial institutions.

The GSEs’ aversion to projects that include transient rental income has riled investors and second-home buyers in some resort communities.

Fannie continues to cut the size of its retained mortgage portfolio.

FHFA says it has not “extended” the fee because it never announced an end date. Nevertheless, it will review the financial situation in October.

Independent mortgage bankers continue to argue that GSE caps on risk-layering and limits on mortgages for second homes and investment properties will harm borrowers and lenders alike.