Freddie Mac considering backing single-family rentals

New York

FREDDIE Mac is considering backing loans that finance single-family rental homes for the first time, mirroring a controversial transaction that Fannie Mae disclosed in January, according to people with knowledge of the matter.

The company's regulator is looking to allow Fannie Mae and Freddie Mac to experiment with a limited number of transactions, to better understand if the US-backed housing finance companies should be allowed to do more, according to one of the people.