Thoughts on Fannie Turning Rentals Into MBS

Posted To: MND NewsWire

Blackstone Group has disclosed that it has secured Fannie Mae’s backing for a mortgage backed by some of the single-family homes it purchased, principally from bank-owned real estate inventories (REO), during the housing crisis. According to the Urban Institute (UI), which produced a Note on the transaction, the loan “marks the first time a government-sponsored enterprise (GSE) has facilitated financing for a large institutional operator of SFR (single-family rental) properties.” Blackstone, a private equity company, operates Invitation Homes (IH), the largest single family rental operator in the U.S. which purchased an estimated 48,000 single-family homes across the country. However, UI was not alone. Frank Nothaft, Senior Economist at CoreLogic estimated recently that, of the approximately…(read more)

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