Fannie’s and Freddie’s Problems Will:

With a little help from Uncle Sam, Freddie Mac and Fannie Mae may have avoided a complete implosion for now. A hefty 66% of our polled readers feel Fannie’s and Freddie’s problems will do serious damage to the multifamily sector, while another healthy 34% think the impact of this will be minimal. Luigi Rosabianca, principal attorney and founder of Rosabianca & Associates, took some time from his day to talk to about his feelings on the subject. Rosabianca represents buyers, sellers and developers in Manhattan and around the world.

“I don’t think it will have a direct impact, but an indirect impact. You know what happens, things inadvertently always have to have an effect. If you have a cold, will it affect your wife? No. But you’re sneezing, you’re coughing and you’re irritable, it affects her.

“The markets will always have a natural, cyclical manner in which they conduct themselves. Without sounding too simplistic, it’s the same problems and benefits over and over again. It’s definitely a corrective measure the government, as a regulatory agency, is coming in and trying to fix things and correct the capitalist forces at play.

“What will occur is a natural correcting effect to the market. The prices may regulate themselves. The lenders will be more diligent and careful about who they lend money, and the purchasers will be more consistent with their payments.

“Perhaps New York will be a bit sheltered because multifamily will always be in demand here.

“I’m curious to see how this will pan out. It will be an interesting conversation in a few weeks or months.”

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