The Federal Housing Finance Agency (FHFA) today announced that Fannie Mae and Freddie Mac (the Enterprises) will conclude their single-family rental pilot programs and then terminate their participation in the single-family rental market except through their previously existing investor programs – Fannie Mae’s Multiple Financed Properties and Freddie Mac’s Investment Property Mortgages.
In the last two years, both Enterprises have participated in the single-family rental market on a larger scale than previously through pilots designed to “test and learn” more about the market and best practices. Parallel to the Enterprises’ pilots, FHFA convened a Single-Family Rental Workshop in June 2017 to solicit feedback, identify market challenges and opportunities, and gain perspective on the overall market. It also conducted an impact analysis and reached out to a wide array of industry stakeholders.
“What we learned as a result of the pilots is that the larger single-family rental investor market continues to perform successfully without the liquidity provided by the Enterprises,” said FHFA Director Melvin Watt.
This FHFA announcement does not preclude the Enterprises from proposing changes to their existing programs to meet the needs of the single-family rental market, or from developing proposals that are calculated to utilize single-family rentals as a pathway to homeownership.