Fannie Mae, Freddie Mac to Conclude Their Single-Family Rental Pilot Programs

Filed in Housing Finance by on August 21, 2018 0 Comments

The Federal Housing Finance Agency (FHFA) announced today that it is directing Fannie Mae and Freddie Mac (the Enterprises) to conclude their single-family rental market pilot programs except through their previously existing investor programs.

FHFA determined the Enterprises’ single-family investment home rental programs have played an important role for small investors, but the market for larger investors has performed successfully without Enterprise participation.

FHFA recognizes the potential need for long-term financing for mid-size investors that own affordable single-family rental assets. However, the agency believes it is premature to allow the Enterprises to enter this portion of the single-family rental market because the effects of their participation on rent growth, long-term affordability, for-sale assets, and homeownership is insufficiently understood without further research and analysis.

This decision does not preclude the Enterprises from proposing changes to their existing single-family programs to meet the needs of the single-family rental market or from developing proposals calculated to utilize single-family rentals as a pathway to homeownership.

NAHB had previously urged caution about the Enterprises expanding into this market, noting concerns about the potential effects on single-family sales and the diversion of Enterprise resources from their multifamily business.

For more information, contact Michelle Kitchen at 800-368-5242 x8352.

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