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.
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