How Our PLS Helps Investment Property and Second Home Buyers

Blog posted On May 12, 2022

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Effective May 2, 2022, we officially launched our own Private Label Security (PLS). Remember when the Federal Housing Finance Agency (FHFA) increased upfront fees on second home and high-balance loans? With our own PLS, we can now help you avoid these fees and offer you a much better price on your second home/ investment property loan.

What Happened with Increased Fees?

In January 2022, the FHFA introduced higher upfront fees for certain second home and high-balance loans sold to Fannie Mae and Freddie Mac. Starting April 2022, the new pricing framework increased upfront fees on second home loans by 1.125% to 3.875%. For a $500,000 loan, this could mean nearly $20,000 in additional upfront fees. Consequently, demand for second homes dropped by roughly 32% between January 2022 and March 2022. Many home buyers were deterred by the fees and avoided purchases without a more affordable option for vacation homes and investment properties.

How Our PLS Can Help You Save Thousands

With our own PLS, we don’t need to sell our loans to Fannie Mae or Freddie Mac

In other words:

  • With our own PLS, we can cut fees in many cases
  • Our second home and investment property loans are in some cases priced significantly better than others
  • Not every bank can do this – CMG is one of the few independent lenders large enough to offer an internal second home and investment product

PLS Program Highlights

Available for:

  • Second Homes 1-Unit SFR, PUD, Condo
  • Investment Property 1-Unit SFR, PUD, Condo & 2-4 Units
  • Agency Conforming & High Balance Loan Limits


  • Fixed-Rate Only
  • Minimum loan amounts as low as $100,000*
  • Maximum loan amounts as high as $1,867,275*


  • LTV as high as 85%*
  • Max DTI: Lower of 50% or AUS determined DTI
  • Min FICO credit score as low as 680*
  • Reserves requirements
    • Loan amount < or equal to $647,200: Greater of 6 months or AUS required reserves
    • Loan amount > $647,200: Greater of 12 months or AUS required reserves

To learn more about our exclusive PLS program, contact us today!


Sources: HousingWire, Redfin