Blackstone Wins Fannie's Backing for Rental Home Debt
January 24 2017 - 9:10AM
Dow Jones News
By Ryan Dezember
Fannie Mae has agreed to backstop up to $1 billion in debt from
the country's largest owner of single-family rental homes, the
first time the government-sponsored entity has agreed to guarantee
the debt of an institutional owner of single-family houses.
Blackstone Group LP's Invitation Homes Inc. disclosed its
agreement with Fannie on Monday in a filing detailing the company's
finances ahead of its planned initial public offering. After the
foreclosure crisis, the New York investment firm spent roughly $10
billion buying and fixing up houses to rent through Invitation
Homes.
Fannie Mae's involvement is a sign that it believes
homeownership will remain out of reach for many Americans and that
Wall Street's housing wager will be become a long-term business,
not just an opportunistic trade made after the foreclosure
crisis.
The support represents a shift from about four years ago, when
Fannie's regulator blocked another government-sponsored entity from
backing bulk buyers of foreclosed homes. Fannie's support will
likely make it cheaper for buyers like Blackstone to add homes in
the future.
Write to Ryan Dezember at ryan.dezember@wsj.com
(END) Dow Jones Newswires
January 24, 2017 08:55 ET (13:55 GMT)
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