Freddie Mac may join Fannie in backing single-family home rentals

|About: Freddie Mac (FMCC)|By:, SA News Editor

Fannie Mae (OTCQB:FNMA) in January raised a few eyebrows among community organizer types when it guaranteed a $1B loan to single-family rental giant Invitation Homes (NYSE:INVH). According to Bloomberg, Freddie Mac (OTCQB:FMCC) may also get into the business of insuring mortgages backed by single-family rentals on an institutional scale.

The GSEs had tried to get into this business as early as 2012, but FHFA officials worried their participation would shut down private participation in the market. Instead they continued with their previous operation of backing loans to individual landlords without very many properties to finance.