Posted on 08/12/2013 8:00:25 AM PDT by whitedog57
As the discussion intensifies in Washington DC about the future of housing finance, the forgotten player in the government guarantee debate is Fannie Mae and Freddie Mac’s presence in the multifamily housing market. President Obama suggested recently that Fannie Mae and Freddie Mac be wound down while preserving the 30 year fixed-rate mortgage for borrowers, but didn’t mention the government’s role in multifamily housing. So now Fannie Mae and Freddie Mac’s regulator, FHFA, is seeking guidance on potentially shrinking their multifamily exposure.
The Federal Housing Finance Agency (FHFA) is seeking public input on strategies for reducing Fannie Mae and Freddie Mac’s presence in the multifamily housing finance market in 2014.
In keeping with the goal of contracting the market presence of Fannie Mae and Freddie Mac while simplifying and shrinking their operations, FHFA’s 2013 Conservatorship Scorecard included reducing their volume of new multifamily business by 10 percent relative to 2012. FHFA expects this reduction to be achieved this year through a combination of increased pricing, more limited product offerings and stronger underwriting standards.
FHFA is now evaluating alternatives for reducing Fannie Mae and Freddie Mac’s multifamily businesses in 2014 and is seeking public input on the potential market impact of various strategies. These include:
· Restrictions on available loan terms; · Simplification and standardization of loan products; · Limits on property financing; · Limits on business activities; and, · Other options that FHFA should consider to contract the Enterprises’ multifamily businesses.
Input must be received within 60 days or no later than Oct. 8, 2013 and should be submitted to Federal Housing Finance Agency, OHRP Multifamily Housing Policy, 400 7th Street, S.W., Room 9-261, Washington, DC 20024 or via email to: multifamilypolicyissues@fhfa.gov. See the link below for the press release and the document that outlines the specific alternatives in greater detail and poses questions that interested parties are invited to answer.
Fannie Mae has their GUARANTEED MULTIFAMILY STRUCTURES using their Delegated Underwriting and Servicing engine.
fanniegem
Freddie Mac has their own structured multifamily deals as well.
freddiecmbs
Please note that both Fannie Mae and Freddie Mac support the affordable housing mission by guaranteeing multifamily loans via taxpayers. FHA already has multifamily programs, so do we need multifamily guaranteed loans from Fannie and Freddie too?
Multifamily is not usually discussed in housing finance reform. Corker-Warner mentions multifamily guarantees (albeit briefly). According to the American Bankers Association review of Corker-Warner, “while multi-family guarantees would be transferred to the Federal Mortgage Insurance Corporation without at no cost.”
The Federal Mortgage Insurance Corporation? That reminds me of the movie, “There Will Be Blood!” Instead, “There Will Be Guarantees!”
And they WILL drink your milkshake!
twbb
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.