Fed Must Have Role in MF Housing

SAN DIEGO-Experts argue that the GSEs are needed since they play such a significant role in multifamily financing. MBA Chairman-Elect E.J. Burke recently told the Senate Banking Committee that lawmakers and regulators must craft a long-term plan for multifamily housing that ensures a role for both private capital and the federal government. At the same hearing, Committee Chairman Tim Johnson noted the important role of Fannie Mae and Freddie Mac in the multifamily housing market and cautioned that broad access to credit must continue to be available as GSE reform moves forward.

Closer to home, Gerson Law Firm APC closed more than $100 million in commercial real estate loans in September on GSE lender engagements, plus additional amounts for other lender financings in which the firm was representing lenders or borrowers. Gordon Gerson, managing partner of the firm, tells GlobeSt.com, “People who need rental housing should not be subject to the harsh effects of capitalism, and thus the case for the continued role for GSEs in multifamily housing. Stability in the housing market means stability in multifamily finance. If you take the GSEs out of their traditional role, it could rocket out of control.”