The Federal Housing Finance Agency (FHFA), Fannie Mae and Freddie Mac’s regulator, recently released two separate reports assessing the viability of operating their multifamily lending platforms without the benefit of a federal government guarantee.
The reports reached similar conclusions, where the elimination of a government guarantee would lead to:
- a reduction in mortgage liquidity to the apartment sector;
- a reduction in multifamily property values;
- a reduction in the overall rental housing supply;
- an increase in multifamily mortgage costs and interest rates; and
- an increase in rents.
Much of the reports’ information supports NMHC/NAA’s position on GSE reform.