Freddie Mac changes mortgage rules, no cash out refinancing.

As of August 1st, 2008 the new mortgage guidelines will limit the number of properties a borrower can own to four 1-4 unit mortgaged properties. This will include any owner occupied or second homes added to any newly mortgaged property one desires to purchase in the future. Freddie Mac will not count the number of mortgages on a property, first and second mortgages will be counted as one. Formerly investors were allowed to own 10 mortgages properties. The policy change also says “no cash out” on refinanced mortgages.

http://www.mortgagebankers.org/files/News/InternalResource/62086_FreddieMacBulletin,April22,2008.pdf

Will other lenders follow?