US agencies to pull out of single-family rental market

Fannie Mae and Freddie Mac are pulling out of the single-family rental market after a two-year pilot program designed to test whether a greater reliance on renting homes in the US required government support. The agencies are significant players in the US housing market, guaranteeing payments to investors on securitised mortgage bonds with the aim of encouraging more lending activity for borrowers. After the financial crisis in 2008, the rate of home ownership declined, hitting in 2016 levels last seen in the 1960s, according to official data.

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Source: Financial Times

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