--- title: "Trump Says He's Taking On Wall Street Homebuyers—But Economist Says It's More Of An Obstacle Course Than A 'Ban'" type: "News" locale: "en" url: "https://longbridge.com/en/news/273226205.md" description: "President Trump signed an executive order to limit federal funding for Wall Street homebuyers, aiming to prioritize individual homebuyers over corporate entities. However, economists argue that the order does not outright ban institutional buyers but creates obstacles by blocking federal support from Fannie Mae and Freddie Mac. The order also directs scrutiny of substantial acquisitions for anti-competitive practices. While it has garnered bipartisan support, it includes exceptions for the Build-to-Rent sector and lacks a clear definition of 'large institutional investor.'" datetime: "2026-01-21T11:27:52.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/273226205.md) - [en](https://longbridge.com/en/news/273226205.md) - [zh-HK](https://longbridge.com/zh-HK/news/273226205.md) generator: "portal-rs" --- # Trump Says He's Taking On Wall Street Homebuyers—But Economist Says It's More Of An Obstacle Course Than A 'Ban' President **Donald Trump** signed an executive order on Tuesday aimed at curbing the influence of large institutional investors in the single-family housing market. However, an economist argues that the order doesn’t ban the Wall Street buyers but just creates an obstacle course for them. ## **Blocking Federal Support** While the administration frames the move as a decisive victory to “preserve the supply of single-family homes for American families,” rental housing economist **Jay Parson** notes that the order stops short of an outright ban, opting instead to remove federal support for corporate landlords. The executive order, titled “Stopping Wall Street From Competing With Main Street,” directs federal agencies to prioritize individual homebuyers over corporate entities. Specifically, it blocks government-sponsored enterprises **Fannie Mae** (OTC:FNMA) and **Freddie Mac** (OTC:FMCC) from facilitating loans to large institutional investors. Additionally, the President has ordered the Department of Justice (DOJ) and the Federal Trade Commission (FTC) to scrutinize “substantial acquisitions” for anti-competitive practices. ## **Hurdles, Not Prohibitions** The order restricts how investors buy homes rather than forbidding the purchases entirely. “The order doesn’t actually ban institutional buyers… but does look to limit it through various means,” explained Parsons, in an X thread. According to Parsons, the administration likely avoided a direct ban due to legal limitations, choosing instead to cut off easy access to federal financing and ramp up antitrust enforcement. The White House indicated it will draft further legislation for Congress to codify a permanent ban. > The White House just released details of its executive order on institutional investors in single-family homes. > > The order doesn't actually ban institutional buyers (presumably due to legal limits) but does look to limit it through various means like blocking Fannie and Freddie… pic.twitter.com/I3SHwrlBbt > > — Jay Parsons (@jayparsons) January 21, 2026 ## **‘MHAA’ And Political Alignments** The executive order has drawn vocal support beyond the administration's usual base. **Dom Kwok**, co-founder of the Web3 education platform EasyA, celebrated the move on X with the slogan “Make Housing Affordable Again! MHAA!,” signaling approval from parts of the tech sector. Politically, the move creates a rare convergence between the Trump administration and its opposition. The crackdown aligns with long-standing Democratic criticism of corporate homebuying, a practice opponents claim has artificially inflated housing costs since the 2008 financial crisis. > President Trump is delivering once again on his commitment to make housing affordable. > > I look forward to working with Treasury Secretary Bessent to make single-family home purchases accessible to more Americans. pic.twitter.com/u5roLI6o7n > > — Scott Turner (@SecretaryTurner) January 21, 2026 ## **The ‘Build-To-Rent' Exception** The order also contains significant exceptions. Parsons noted that the booming “Build-to-Rent” (BTR) sector is carved out, provided the projects are “planned, permitted, financed, and constructed as rental communities.” This protects developers building new rental subdivisions while targeting investors who buy existing scattered homes that would otherwise go to families. Furthermore, the order effectively kicks the can down the road on enforcement specifics: it does not yet define what constitutes a “large institutional investor,” instead giving the Treasury Department 30 days to establish the criteria. ***Disclaimer:*** *This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.* *Photo: jd8/Shutterstock* ### Related Stocks - [JABS.US](https://longbridge.com/en/quote/JABS.US.md) - [JHMB.US](https://longbridge.com/en/quote/JHMB.US.md) - [VMBS.US](https://longbridge.com/en/quote/VMBS.US.md) - [REM.US](https://longbridge.com/en/quote/REM.US.md) - [FMCC.US](https://longbridge.com/en/quote/FMCC.US.md) - [DABS.US](https://longbridge.com/en/quote/DABS.US.md) - [FNMA.US](https://longbridge.com/en/quote/FNMA.US.md) - [JMBS.US](https://longbridge.com/en/quote/JMBS.US.md) - [MORT.US](https://longbridge.com/en/quote/MORT.US.md) - [MBB.US](https://longbridge.com/en/quote/MBB.US.md) - [SMBS.US](https://longbridge.com/en/quote/SMBS.US.md) - [PMBS.US](https://longbridge.com/en/quote/PMBS.US.md) - [JMTG.US](https://longbridge.com/en/quote/JMTG.US.md) - [SPMB.US](https://longbridge.com/en/quote/SPMB.US.md) ## Related News & Research - [Does VantageScore 4.0 Rollout Change The Bull Case For Fannie Mae Stock?](https://longbridge.com/en/news/298754949.md) - [Pulte, FHFA fraud crackdown heightens counterparty vetting risks](https://longbridge.com/en/news/298352658.md) - [US regulator says credit scoring firm FICO increasing prices for borrowers](https://longbridge.com/en/news/298481528.md) - [Fannie Mae (OTCMKTS:FNMA) Given Average Rating of "Hold" by Analysts](https://longbridge.com/en/news/298283153.md) - [StoneX, DeltaTerra execute synthetic credit risk transfer deal tied to Fannie Mae CAS, Freddie Mac STACR](https://longbridge.com/en/news/298591370.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**