Multi-Housing News - October 2009 - (Page 14)

finance/investment The Future of the GSEs By Keat Foong, Executive Editor Is time running out for the governmentsponsored entities and the capital they provide for the industry? Fannie Mae and Freddie Mac may or may not be here in the long-term. For an industry that has for so long relied on the two private agencies, which were created by Congress to provide liquidity for the residential markets, that may be disconcerting news. “No one knows if there will be Fannie or Freddie down the road,” acknowledges David Cardwell, vice president of capital markets and technology, at the National Multi Housing Council (NMHC). “The landscape is definitely going to change. There is no question.” In the summer, there was a flurry of activity as trade groups met with the Administration and Congress. Congress held hearings regarding the future of the two agencies in June and is expected to hold additional hearings in the fall. The GAO (Government Accountability Office), the Mortgage Bankers Association (MBA) as well as the National Housing Conference (NHC) have so far provided frameworks for discussions. And the Obama Administration is expected to submit its proposals for restructuring the two entities in its FY 2011 budget. The multifamily industry is carefully tracking the preliminary discussions. There may be apprehension that the needs of the small industry may get lost in the bigger discussions. As of press time, NMHC is planning to hold further discussions with its members. “Our goal is to preserve as much of the current system as we can,” says Cardwell. “We want to make sure the impact on multifamily is as minimal as possible in the way [the Government Sponsored Enterprises (GSEs)] currently operate, that is, as efficient sources of cost-effective mortgage capital and flexible mortgage products that have performed well over time.” Cardwell cautions that whatever solution works for single-family October 2009 | Multi-Housing News

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

Multi-Housing News - October 2009
Contents
From the Editor
Executive Insight
News
Market Pulse
Finance: The Future of the GSEs
Investment: Transactions
Market Report: Midwest
Property Management
Development: Adaptive Reuse
Products
Technology

Multi-Housing News - October 2009