AEI researchers said large institutional investors own about 1% of single-family homes vs. 11% for small-scale investors with low interest rate GSE-backed loans.
Testimony from both liberal and conservative housing industry observers questioned the Trump administration’s policy regarding the future of Fannie and Freddie.
Housing advocates say the new, lower benchmarks generally favor middle- and working-class borrowers at the expense low-income and very low-income borrowers.
Next year, the GSEs will see a $30 billion hike in their combined multifamily caps, which is in keeping with forecasts of more multifamily activity in 2026.
According to an analysis by a former FHFA economist, GSE market share ranges from 14.5% in Eagle Pass, TX, to 67.0% in Boulder, CO. Except for Puerto Rico, these disparities are widest in the South and Southwest.
Allowing the GSEs, under certain conditions, to purchase up to $300 billion in agency MBS each could reduce mortgage rates by as much as 30 basis points, lender groups say.
The FHFA released its first strategic plan under the auspices of Director Bill Pulte. The plan reveals some differing priorities compared with the FHFA under the Biden administration.
The CHOICEHome product, previously only available for multisection factory-built homes, is now available for single-wides. It’s expected to improve housing options in rural and underserved areas.
The GSEs will now be able to invest a combined $4 billion a year in LIHTC affordable housing tax credits. At least half of that investment must be in difficult-to-serve LIHTC communities.
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