As the housing affordability crisis worsens, rent control measures have been enacted in Oregon and New York City, and are gaining momentum in other places. Funding more affordable housing is one of lender Freddie Mac’s goals, but rent control measures can add to risk for lenders, CEO David Brickman said in a GlobeSt.com interview.
Rent control can force a lender to examine underwriting policies in terms of how a loan is sized, Brinkman said. Refinance risk has to be considered as lenders project forward economic conditions of the property 10 years in the future, he added.
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