Housing Finance Reform

NMHC/NAA VIEWPOINT Preservation of the mortgage liquidity currently provided by the GSEs in all markets during all economic cycles is critical. This can be achieved either through: (1) the existing GSE structure; or (2) through a reformed structure that preserves the high quality and value of the current multifamily secondary mortgage market activities.


ONE IN THREE Americans rent, and 17 million of those households are building their lives in apartments.  Many factors influence the apartment industry’s health and its ability to meet the nation’s growing demand for rental housing, but the availability of consistently reliable and competitively priced capital is the most essential. 

EVEN WITH ALL PLAYERS BACK IN THE MARKET, FANNIE MAE AND FREDDIE MAC PROVIDED 45% TO 50% OF MULTIFAMILY MORTGAGE DEBT IN 2012.

The bursting of the housing bubble exposed serious flaws in our nation’s housing finance system.  Yet those shortcomings were largely confined to the residential home mortgage sector. The Government Sponsored Enterprises’ (GSEs’) (i.e., Fannie Mae and Freddie Mac) very successful multifamily programs were not part of the meltdown and have actually generated over $10 billion in net profits to the government since being placed into conservatorship.

More than just preforming well, the GSE’s multifamily programs serve a critical public policy role. Unfortunately, even during normal economic times, private capital alone cannot fully meet the industry’s financing needs.  The GSEs ensure that multifamily capital is available in all markets at all times, so the apartment industry can address the broad range of America’s housing needs from coast to coast and everywhere in between. 

NMHC/NAA urge lawmakers to recognize the unique needs of the multifamily industry and to retain the successful components of the existing multifamily programs in whatever succeeds them.  We believe the goals of a reformed housing finance system should be to:

  1. Ensure mortgage liquidity in all markets at all times;
  2. Ensure capital availability for the wide range of properties, sponsors and renters; 
  3. Expand private capital participation;
  4. Limit/mitigate market disruptions; and
  5. Insulate the taxpayer from losses. 

For more information, please refer to the NAA/NMHC white paper on GSE reform, entitled “Key Principles for Preserving Liquidity and Stability for Multifamily in a Reformed Housing Finance System.”

CONTACT INFORMATION

David Cardwell
Vice President of Capital Markets and Technology

NMHC/NAA Joint Legislative Program
202/974-2336
dcardwell@nmhc.org 

NMHC/NAA Key Principles for Housing Finance Reform

Read NMHC/NAA's White Paper on Housing Finance Reform here.

Learn more about capital sources for the apartment sector here.

 

Latest News

Legislative/Regulatory Proposals

Information on legislative and regulatory proposals related to housing finance reform.  Includes links to rulings, bills and NMHC/NAA comments.

Congressional Hearings

list of Congressional hearings held to date on housing finance reform.  Includes links to NMHC/NAA statements, hearing webcasts and written testimony of witnesses.

Additional Resources

Resources for Practitioners

Additional information on the GSEs for practitioners is available here.