In a memorandum to banks last week, Fannie expounded that when new speculators sign up for financing to get an apartment unit, they will not have to cope with its previous rule whereby empty, bank foreclosed and REO units were counted as non-owner occupied.

That is vital because Fannie's long-time policy has been to bar new financier loans in buildings where less than 51 % of the units are owned and occupied as principal apartments or 2nd houses. Under the revised policy -- which was requested by the NAR (National Association of Realtors) in Nov -- Fannie explains it will now count bank-owned REO units that are listed for sale, but are no longer leased, as if they are owner-occupied when computing the 51 % proportion. In buildings that still don't meet that baseline occupancy test, Fannie explains it will permit lenders to request waivers by submitting money info about the project for individual review by Fannie.

Brian Rodgers works as a real estate agent and investor in the Hutchinson Kansas Real Estate Market.