PREVENTING WALL STREET FROM OUTBIDDING MAIN STREET HOMEBUYERS:
Today, President Donald J. Trump signed an Executive Order aimed at safeguarding the American Dream by ensuring that large institutional investors do not snatch up single-family homes that are intended for families.
- The Executive Order instructs key agencies to issue guidance that prevents relevant Federal programs from approving, insuring, guaranteeing, securitizing, or facilitating the sale of single-family homes to institutional investors.
- The Order mandates that agencies promote sales to individual owner-occupants by implementing first-look policies, which allow individuals and non-institutional investors the chance to purchase foreclosed properties before institutional buyers do, alongside establishing disclosure requirements and anti-circumvention measures.
- The Secretary of the Treasury is tasked with reviewing regulations and guidance related to large institutional investors acquiring or holding single-family homes.
- The Attorney General and the Chairman of the Federal Trade Commission are directed to examine acquisitions by large institutional investors for anti-competitive practices, prioritizing enforcement against certain practices within the single-family rental market.
- The Secretary of Housing and Urban Development is charged with identifying large institutional investors involved in Federal housing assistance programs by requiring transparency in ownership of single-family rentals.
- The Order also directs the White House to prepare legislative proposals aimed at preventing large institutional investors from acquiring single-family homes.
PRIORITIZING AMERICAN FAMILIES IN THE HOUSING MARKET:
President Trump is committed to making homeownership accessible again after years of Wall Street overshadowing first-time buyers and young families.
- For many, owning a home symbolizes the pinnacle of the American Dream and serves as a means of building long-term wealth.
- Unfortunately, the combination of high inflation and rising interest rates, attributed to the Biden Administration, has pushed starter homes out of reach for countless Americans. Meanwhile, large Wall Street investors have been quick to acquire single-family homes in numerous communities.
- These institutional buyers, armed with substantial financial resources, often outbid hardworking families, transforming neighborhoods into collections of investor rental portfolios rather than vibrant communities.
- This surge in institutional buying has not only depleted the supply of homes available for owner-occupants but also escalated prices in many areas, complicating wealth-building through homeownership for average Americans.
- This Executive Order ensures that Federal housing programs will prioritize families over Wall Street interests and lays the groundwork for legislation that prohibits large institutional investors from acquiring single-family homes.
- After all, homes are meant for people, not corporations.
DELIVERING ON COMMITMENTS TO AMERICAN FAMILIES:
President Trump has embarked on a robust agenda to address the housing challenges facing American families and to reinstate the dream of homeownership.
- This Executive Order fulfills President Trump’s commitment to “immediately [take] steps to ban large institutional investors from buying more single-family homes.”
- Additionally, President Trump has instructed Fannie Mae and Freddie Mac to purchase $200 billion in mortgage-backed securities to further reduce borrowing costs.
- These focused housing and affordability initiatives build on previous actions taken by President Trump to put more money in Americans’ pockets.
- Upon assuming office, President Trump halted all unfinalized rules from the Biden era, resulting in an average savings of $2,100 for families.
- He enacted the Working Families Tax Cuts, which delivered the largest tax reduction in American history and increased take-home pay by over $10,000 for a typical family.
- His America First, pro-growth policies, commitment to energy independence, and deregulatory agenda have effectively cut red tape, reduced inflation, decreased mortgage rates and gas prices, stimulated GDP growth, and attracted trillions in investments to the U.S.
- President Trump remains focused on exploring additional avenues to provide relief to Americans from the economic and financial mismanagement of the Biden era, enabling families to thrive and realize the American Dream of homeownership.
