Freddie Mac Tapping Into Trailer Park Business

This item from the Wall Street Journal is interesting:

Freddie Mac FMCC -1.01% is financing residential trailer park developers, a sign the mortgage giant is facilitating more types of affordable housing by expanding in the commercial real estate market.

The U.S. mortgage finance firm on Wednesday launched a program to purchase loans made to owners of manufactured housing communities and package them into securities for sale to investors, said David Brickman, an executive vice president of Freddie Mac’s multifamily lending group. The loans are mainly backed by rents paid by the people who live in the homes on the property…

Freddie Mac’s move into manufactured housing communities also comes as it is doing less funding for other types of multifamily dwellings, such as apartment buildings. Banks and other lenders are also stepping up their financing of developers of manufactured housing communities, Mr. Brickman said.

Freddie Mac has issued about $5 billion in securities backed by other types of multifamily housing this year, falling behind the pace of last year when it issued about $28 billion in the bonds, according to Credit SuisseCSGN.VX -2.78% The Federal Housing Finance Agency last year directed Freddie Mac and Fannie Mae to rein in their multifamily business by 10%, as the regulator sought to reduce the companies’ roles in U.S. housing finance.