On Jan. 16, 2014, NMHC/NAA sent a letter to Mel Watt welcoming him as the new director of the Federal Housing Finance Agency (FHFA). The letter also expressed concern over actions taken by FHFA to limit by 10 percent the multifamily origination activities of the Government Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac, which has created inconsistency in lending activities.
NMHC/NAA emphasize that the GSEs’ decline in overall market share has more to do with increased lending by other sources than the FHFA origination reduction requirement. Specifically, the letter outlines that the FHFA action ultimately increased market uncertainty about the political risks associated with the GSEs’ multifamily lending, caused artificial reductions in their capital availability, and left many apartment owners looking for debt that did not provide the best match for their needs.
