Loan Guarantees and Financial Benefits Banned for Wall Street Purchases
Federal Government Homes Also Barred from Sale to Wall Street
President Donald Trump of the United States has put a halt to single-family home investments by Wall Street institutional investors.
According to the Wall Street Journal (WSJ) on January 20 (local time), President Trump signed an executive order prohibiting institutional investors, rather than individual homebuyers, from receiving loan guarantees or financial benefits when purchasing single-family homes.
The executive order also includes a provision banning the sale of homes owned by the federal government to institutional investors. However, the order does not provide specific definitions for institutional investors or single-family homes, nor does it include immediate implementation measures.
The White House plans to prepare a legislative recommendation to have the executive order finalized through congressional legislation. The Republican Party is reportedly preparing related bills, but it is expected to take at least several months before any actual legislation is passed.
In addition, President Trump instructed Treasury Secretary Scott Bessent to establish criteria for institutional investors and single-family homes within 30 days.
However, market analysts point out that since the proportion of single-family homes owned by Wall Street institutional investors accounts for only about 2-3% of the entire market, the investment restrictions are unlikely to have a significant impact.
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