New restrictions on financing

I heard from an attorney friend of mine that represents Lenders that word is on the street that investors said they wouldn't buy condos in Miami/Dade, so they had to eliminate the entire State.

He also told me that although it's not something we've seen in the business, that it wouldn't be considered redlining, but if it was brought up, the argument that that they had to protect their investors from loss would be valid.

I heard from an attorney friend of mine that represents Lenders that word is on the street that investors said they wouldn't buy condos in Miami/Dade, so they had to eliminate the entire State.

He also told me that although it's not something we've seen in the business, that it wouldn't be considered redlining, but if it was brought up, the argument that that they had to protect their investors from loss would be valid.

The last part of the article states something I hadn't heard earlier (can you confirm?):

In addition to the ban on mortgages to fund purchases of Florida condos, Option One nationwide has stopped underwriting loans that lack full income documentation and isn't making loans secured by a second home or an investment property.

The last part of the article states something I hadn't heard earlier (can you confirm?):

In addition to the ban on mortgages to fund purchases of Florida condos, Option One nationwide has stopped underwriting loans that lack full income documentation and isn't making loans secured by a second home or an investment property.

I never had reason to do business with them so I do not have their guidelines or access to them, but the above sounds like to me that outside of Florida they will not be offering condo loans that are for vacation/second homes or condo investment properties, only primary residences.

If I hear otherwise, I will let you know.