Rent freeze scaring away government-backed lenders

A knock-on effect of the rent freeze that went into effect last month? Even the lenders that backstop much of the mortgage market are becoming resistant to old patterns. Fannie Mae toughened its underwriting standards for rent-regulated buildings while Freddie Mac has paused new lending as it assesses the financial fallout from Mayor Zohran Mamdani’s rent freeze, The City Reporter reported. The moves threaten to leave struggling owners with few options when their mortgages come due and could push properties toward foreclosure or distressed sales. Fannie Mae’s revised assumptions effectively bake in four to eight years of flat rents, covering […]

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