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.
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.
Craig Phillips, senior counselor to Treasury Secretary Steven Mnuchin, recounts the Trump administration’s difficulties in ending the net worth sweep and the conservatorships.
A recent report from the Congressional Research Service suggests that it may be difficult to simultaneously raise the capital requirements for the GSEs and shrink their footprint, and still expect them to attract equity investors.
Several of the regulatory and management measures undertaken to mitigate the impact of the pandemic are slowly being eased. Is that a sign markets are improving?