Vindication! Fannie Gets a Clue.

You may have read my earlier posting about the failed logic of Fannie Mae's restriction on investor-ownership of more than four financed properties. (Read Fuel, But No Fire November 28, 2008) In a statement released today, they agreed with me, and have relaxed those restrictions. Here is an excerpt:

Fannie Mae is committed to providing financing opportunities for high-credit quality, bona fide investors. Experienced investors play a key role in the housing recovery and Fannie Mae’s continued support for investor borrowers is consistent with its mission to provide stability, liquidity, and affordability to the nation’s housing system.

Fannie Mae is updating the policy that pertains to multiple mortgages to the same borrower. ... Fannie Mae is modifying this policy to allow investor and second home borrowers to own five to ten financed properties if they meet certain eligibility and underwriting and delivery requirements as outlined in this Announcement.

For the complete announcement click here.