Freddie Mac today announced plans to cap its purchase of single-family mortgages secured by investment properties and second homes to comply with recent changes to the stock purchase agreement governing the GSE’s federal conservatorship.
For the month of July, for sellers that sell more than five loans secured by second homes and/or investment properties in a month, such loans may not exceed 6.5% of their total monthly unpaid principal balance. After July, the cap will be set at 6%.
Freddie noted that any loans submitted after the cap is exceeded and subsequently found to be ineligible will be subject to remedies including—but not limited to—repurchase. Freddie noted that the cap “is intended to be temporary and may be revised as needed.” The GSE also issued a set of frequently asked questions on the cap.