HUD and FHA Clarify Freddie Mac Group Home Policy

The Federal Housing Finance Agency and the Department of Housing and Urban Development reported clarifications of Freddie Mac's policies to make clear it will purchase mortgages secured by a property owned by an individual and rented to a group home for persons with disabilities.

The clarifications were made to encourage lenders in extending credit for such mortgages, thus providing more community-based living opportunities for persons with disabilities. These clarifications were included in Freddie Mac's September 1 update to Freddie Mac's Seller/Servicer Guide.

The clarifications follow a HUD investigation of a mortgage lender who had refused to lend to a homeowner that was renting their property to a company operating a group home. The lender's refusal was based on the incorrect belief that Freddie Mac would not agree to buy the mortgage. After HUD reported this misunderstanding to Freddie Mac and FHFA, Freddie Mac worked with both agencies and ultimately agreed to revise its policies and make this announcement to clarify that Freddie Mac has always been willing to buy these mortgages secured by a group home.