Freddie Mac Doubles Down on Double Wides, Starts Funding Loans for Trailer Parks
“We have been cautious in terms of watching our securitization business grow. With the program being successful, we are confident that we can distribute the risk.”
Freddie Mac Starts Trailer Loans That Buffett Criticized
Want to buy a trailer park? Freddie Mac (FMCC) wants to give you a loan.
The unit of the government-owned mortgage giant that funds apartment buildings is set to begin financing manufactured-housing communities, the company said in a statement today.
The firm is broadening its reach in the multifamily segment of the housing market as it seeks to fulfill its mandate to provide affordable options for low-income families. The McLean, Virginia-based lender will work with established companies in the industry across the U.S., said David Brickman, the head of multifamily operations at Freddie Mac.
“It’s rounding out our ability to touch the affordable housing space,” Brickman said today in a telephone interview. “Manufactured housing is a big piece of rural affordable housing.”
Warren Buffett, the billionaire chairman of Berkshire Hathaway Inc., lamented the punitive rates charged to purchase factory-built homes in his 2009 annual letter to shareholders. Berkshire owns Clayton Homes Inc., a builder of the properties.
Without funding from Fannie Mae and Freddie Mac, owners of the housing complexes are forced to pass on higher debt costs to the families they serve.
I can’t imagine what could possibly go wrong…