President Trump issued an executive order on “Stopping Wall Street from Competing with Main Street Homebuyers,” directing:
- Department of Treasury to define “large institutional investor” and “single-family home” within 30 days; and
- Requiring FHA, FHFA, USDA, and Department of Veterans’ Affairs within 60 days to bar mortgage insurance and GSE guarantees for single-family homes purchased by large institutional investors.
Go Deeper: Section 3ii(b) directs guidance to exempt the inclusion of build-to-rent properties, eliminating any unintended impact to the Housing Credit.
“The guidance issued pursuant to subsection (a)(i) of this section shall include appropriate, narrowly tailored exceptions for build-to-rent properties that are planned, permitted, financed, and constructed as rental communities, and such other appropriate, narrowly tailored exceptions as the applicable agency may determine appropriate to further the policies of my Administration.”
In his accompanying speech at the World Economic Forum in Davos, President Trump referenced the executive order and briefly discussed other single family housing initiatives related to lowering mortgage rates such as:
- Directing Fannie Mae and Freddie Mac to purchase $200 billion in mortgage securities; and
- Capping credit card interest rates to allow saving for a house down payment.
