Fannie Mae's troubles, which it shows little ability to resolve, are stoking fears yet again among multifamily borrowers and developers--which have come to rely almost entirely on the two GSEs and HUD for financing--that Congress and the Administration are going to make changes to the model, to the detriment of the industry. "I think once the health care debate is settled one way or another, housing is going to be front and center," one executive at a multifamily finance company tells GlobeSt.com.
The options, as outlined by the GAO, in a recent report, fall along three tracts, none of which are entirely pleasing to multifamily developers. These include reconstituting the enterprises as for-profit corporations with government sponsorship, but place additional restrictions on them such as controls to minimize risk; establishing the enterprises as government corporations or agencies; and privatizing or worse, or terminating them.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
