This weekend’s action by the Treasury Department to assume management of these agencies should, in the long run, have a positive impact on the multifamily sector. According to Doug Bibby, President of the National Multi Housing Council (NMHC)….
“Fannie Mae and Freddie Mac have played a critically important role in the apartment industry, and we do not expect that to change with the recent actions taken by the Treasury Department. It is important to note that neither company faces an immediate crisis. Rather, these actions were taken largely to restore investor confidence and keep the markets working. ”
As further referenced in the article by NMHC, this weekends move was geared primarily towards supporting the companies’ residential loan portfolio. The Multifamily sector is on solid footing and should remain viable for years to come. As such, we believe that the agencies will continue to provide liquidity to this sector as apartment loans currently and historically are profitable and contribute greatly to supplementing reserves.
That all said, it is anticipated that changes in management will occur and potentially impact how Fannie and Freddie process, structure and administer loans. In the end, we believe the governments role will have a positive impact on all sectors and be the impetus that creates positive momentum that has been needed to end this real estate debacle and reverse the trend.
<a href=”http://technorati.com/claim/xfm9f8ppqz” rel=”me”>Technorati Profile</a>
