GSE Financing of Single-Family Rentals: What Have We Learned from the Invitation Homes Deal?

Fannie Mae recently completed the first ever GSE securitization of single family rental (SFR) properties owned by an institutional investor for Invitation Homes, one of the largest institutional players in the SFR business. This paper analyzes the completed deal, examining key structural aspects and the need for this type of financing. The paper also discusses affordability aspects of the deal and urges the Federal Housing Finance Agency to articulate a clear vision for the GSEs role in the SFR market to ensure that the benefits of such deals are used mainly to increase the availability of rental housing for those earning up to the area median income.