Multi-Housing News - April 2009 - (Page 12)

backed MBS into the market for the first time in many years. “So far in 2009, there has been a lot of interest. Brokers and investors are reacquainting themselves with the MBS market,” says Casey Fannon, senior vice president at NCB. Fannon added that many DUS lenders are directing their business to Fannie Mae MBS as opposed to portfolio executions. (What this means for borrowers is that interest rates could be lower for loans that are to be sold as MBS, compared to loans held in portfolios. However, some lenders say the terms for MBS-backed loans can be more inflexible, since the securities have to be sold into the market, while others say there is not much difference between a Fannie Mae loan that is placed in its portfolio versus one sold as MBS.) “There does seem to be growing investor appetite for Fannie and Freddie multifamily mortgages,” The right company for right now. We help clients discover opportunities and meet discover challenges during even the roughest market conditions. We call it nimbility. You’ll call it getting results. agrees David Cardwell, National Multi Housing Council (NMHC) vice president of capital markets and technology. Chandan cautions, however, that the success of MBS compensating for portfolio reductions still depends on the availability of buyers for MBS. “That is a major complicating factor now,” says Chandan. Meanwhile, NMHC has been in communication with FHFA regarding the industry’s concerns on this issue. The group met in February with FHFA Director Lockhart. “Part of the objective was to seek better oversight of multifamily components of the portfolio,” says Cardwell. NMHC asked FHFA to carve out multifamily financing from requirements of the portfolio reduction in 2010, but Cardwell said FHFA could not provide such a commitment. What FHFA did say, according to Cardwell, is that “they, as a regulator, will not prohibit Fannie and Freddie from purchasing multifamily due to the portfolio limitations” or “from participating actively as needed in the multifamily market.” Cardwell adds that FHFA recognizes that the two agencies contribute as much as 80 percent of multifamily financing. “We left the meeting feeling positive with the statements because of the assurances by the regulators, but there is still an incredible amount of uncertainty,” says Cardwell. A policy brief prepared by the Joint Center for Housing Studies, in conjunction with NMHC, suggests that Congress may be able to suspend the mandated reductions “as it focuses on the larger problem of ensuring that the housing markets remain liquid.” However, the report said it is “unclear” whether this will happen. For now, “the wild card, in the case of Freddie Mac and Fannie Mae’s situation, is the government, which can change its policy on the mandate to the agencies’ reducing their portfolios,” says David Hendrickson, managing director of Real Estate Investment Banking at real estate investment sales and banking advisor Jones Lang LaSalle. “The administration has a good thing going with the agencies right now—so maybe they will extend this deadline. I hope they do, and certainly a lot of people do.” MHN To comment, email keat.foong@nielsen.com Commercial Real Estate Services northmarq.com MHN ONLINE Jones Lang LaSalle survey shows when lending is expected to return. www.multi-housingnews.com/JonesLangSurvey Debt/Equity • Investment Sales • Brokerage Corporate Solutions • Property Management For more information, visit www.multi-housingnews.com/productinfo 12 April 2009 | Multi-Housing News | Official Publication of Multi-Housing World http://www.northmarq.com http://www.northmarq.com http://www.multi-housingnews.com/JonesLangSurvey http://www.multi-housingnews.com/productinfo

Table of Contents for the Digital Edition of Multi-Housing News - April 2009

Multi-Housing News - April 2009
Contents
From the Editor
Executive Insight: Sue Ansel
Finance: Fannie Mae & Freddie Mac
Quote of the Month
Market Forecast: Texas
Profile: Affordable Developers
Operations: Green Laundry Rooms
Technology: BIM
Kitchen & Bath: Tile Installation
Perspective: Doug Bibby, NMHC

Multi-Housing News - April 2009