California REALTORS® raise concerns with Freddie Mac's move to back institutional investors in single-family home rental market

LOS ANGELES, Aug. 3, 2017 /PRNewswire-USNewswire/ -- The CALIFORNIA ASSOCIATION OF REALTORS^® (C.A.R.) today issued the following statement in response to comments made by Freddie Mac CEO Don Layton that Freddie Mac is looking to work with institutional investors in the single-family home rental market:

"While C.A.R. is waiting on details, we are concerned with Freddie Mac moving forward to partner with institutional investors to use what is essentially a government guarantee to compete with homebuyers," said C.A.R. President Geoff McIntosh. "While Freddie has hinted a potential deal may include affordable housing, the deal announced earlier this year by Fannie Mae did not, and there are no requirements that any future deals by the GSEs must promote affordable housing."

"C.A.R. has worked at every level of government to support affordable housing programs; this includes maintaining existing programs, increasing inventory and finding new sources of funding for affordable housing. Freddie Mac and Fannie Mae already support affordable rentals through their multifamily programs. This move forces homebuyers to directly compete with government-backed institutional investors who are buying a large portion of homes directly off the MLS," said McIntosh.

Leading the way...® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 190,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

SOURCE CALIFORNIA ASSOCIATION OF REALTORS