Trump Appointee Reverses Biden’s Renter Rights Program

The new director of the Federal Housing Finance Agency (FHFA) has quickly issued an order to reverse the Biden administration’s renter rights program for multifamily properties backed by Fannie Mae (FNMA) and Freddie Mac (FMCC).

Bill Pulte, appointed by President Donald Trump to run the Fannie Mae and Freddie Mac regulator, posted a document on his X account Monday and wrote that Biden’s directive on multifamily properties was rescinded.

The directive, which was issued by the Biden administration over the summer, required multifamily housing providers with mortgages backed by Fannie Mae and Freddie Mac to provide tenants with a 30-day notice of a rent increase and a lease term’s expiration, as well as a five-day grace period for late rent payments, according to the FHFA’s website.

The Biden administration said the policy was part of a “Blueprint for a Renters Bill of Rights” and intended to “increase fairness in the rental market” and strengthen tenant protections, according to a January 2023 release from the White House.

While the policy was expected to go into effect last month, it was put on hold on Feb. 21. Pulte’s new order effectively reverses the directive.

A spokesperson for the FHFA did not immediately respond to a request for comment.

In his post, Pulte argued that the policy, which has also been opposed by the National Apartment Association and the National Multifamily Housing Council, would “increase compliance burdens for multifamily lenders and property owners.”

Pulte also wrote in the memo that “many states and local governments have existing laws and policies related to lease notices and grace periods for late fees.”

Since being chosen by Trump in January and confirmed last week, Pulte has made a lot of moves as director of FHFA, including appointing himself as chairman of the board of both Fannie and Freddie and ousting 12 members of the boards, Bisnow reported.

Pulte — who is still the head of private equity firm Pulte Partners — also made waves by firing Freddie CEO Diana Reid and putting more than 700 of the agency’s employees on leave, according to Bisnow.

The actions come amid speculation that Pulte is likely to move Fannie and Freddie away from government control and toward the private sector, a move that could send mortgage rates higher, as Commercial Observer previously reported.

Isabelle Durso can be reached at idurso@commercialobserver.com.