President Trump yesterday signed an executive order directing federal agencies to cease activities that facilitate the sale of single-family homes to large institutional investors and to take possible legal action against those firms.
In the order, Trump alleges that large investment firms buying homes in certain areas of the country have made housing unaffordable for many families. The order directs agencies and government-sponsor enterprises – such as Fannie Mae and Freddie Mac – to stop approving, insuring, guaranteeing, securitizing or facilitating the acquisition of single-family homes by the firms.
The order directs the attorney general and Federal Trade Commission to review “substantial acquisitions” of housing by large institutional investors and to prioritize enforcement of the antitrust laws against coordinated vacancy and pricing strategies. It also requires the Department of Housing and Urban Development to review the role of the firms in single-family home rentals participating in Federal housing assistance programs.
In addition, the order directs White House staff to prepare proposed legislation to prevent the firms from buying single-family housing.
In related news, Trump announced today that he directed Fannie and Freddie to purchase $200 billion in mortgage bonds. By increasing demand for these bonds, the administration seeks to drive mortgage rates down and lower monthly payments for homebuyers.
