The Wall Street Journal yesterday described a transaction between Fannie Mae and a buy-to-rent company designed to change this contentious business model into one in which hopeful homeowners rent a house from the company for a year or two, turning rental payments into the equivalent of a down payment that then gets them a permanent mortgage with which to fund the picket fence around their new dream home. All sweet, but how does it really work and what happened to charter requirements for credit enhancement on over 80s?
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