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.
Although most housing advocates applauded the Supreme Court’s Collins decision, shareholders argue the justices ignored key points. Nevertheless, legal experts say there’s little chance the plaintiffs will prevail when the case returns to circuit court.
Craig Phillips, senior counselor to Treasury Secretary Steven Mnuchin, recounts the Trump administration’s difficulties in ending the net worth sweep and the conservatorships.