- FHFA Director Bill Pulte rescinded a Biden-era renter protection policy that required landlords with Fannie Mae- and Freddie Mac-backed loans to provide 30-day notice of rent increases and a five-day grace period for late rent payments.
- Industry groups opposed the policy, arguing it created unnecessary compliance burdens since many state and local laws already cover tenant protections.
- Since his confirmation on March 13, Pulte has moved quickly, making sweeping leadership changes at Fannie Mae and Freddie Mac, including appointing himself chairman of both boards and firing Freddie’s CEO.
- The Trump administration is weighing an executive order to study privatizing Fannie and Freddie, which could generate up to $30B for a potential U.S. sovereign wealth fund.
Biden-Era Renter Protections Scrapped
Just weeks after taking office, Federal Housing Finance Agency (FHFA) Director Bill Pulte overturned a key Biden administration housing policy aimed at increasing renter fairness.
According to Bisnow, the policy, which was set to take effect last month, applied to multifamily landlords with federally backed mortgages. It required them to provide renters with at least 30 days’ notice before raising rent or terminating a lease and a five-day grace period for late rent payments.
Industry groups, including the National Apartment Association and the National Multifamily Housing Council, criticized the policy, arguing it would increase compliance costs without significantly improving tenant protections. Pulte’s order echoed those concerns, stating that state and local governments already regulate lease notices and late fees, making a federal mandate unnecessary.
FHFA officials have not commented on the decision.
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The Rental Market Landscape
The reversal comes at a time when rents are declining nationwide. At the end of 2024, the median asking rent in the U.S. fell 0.3% year over year to $1,594, marking the lowest level since March 2022, according to Redfin.
Meanwhile, evictions remain high, with over 1 million filings in the past year across 10 states and 36 cities tracked by Princeton University’s Eviction Lab. However, eviction filings declined in January and February of this year compared to previous months.
Pulte’s Aggressive Overhaul of Housing Agencies
Pulte’s decision to rescind tenant protections is just one of several rapid changes since his Senate confirmation on March 13. In less than two weeks, he has:
- Appointed himself chairman of both Fannie Mae and Freddie Mac after a major shake-up of their boards.
- Replaced eight board members at Fannie and four at Freddie, bringing in his own appointees.
- Fired Freddie Mac CEO Diana Reid and placed dozens of FHFA employees on indefinite administrative leave.
Privatization of Fannie and Freddie on the Table?
The Trump administration is exploring a plan to privatize Fannie Mae and Freddie Mac, which have been under government conservatorship since the 2008 financial crisis. An executive order could direct federal agencies to study the feasibility of a public offering that could raise up to $30B.
If privatization proceeds, they could be used to create a U.S. sovereign wealth fund, a move that would have major implications for the housing finance system.
For now, Pulte’s rapid-fire policy reversals and leadership changes signal a sharp pivot in federal housing policy that favors deregulation and market-driven approaches over renter protections.
