Fannie Mae Makes Adjustments for 2009
Multi Family Executive reports: For those concerned about where Fannie Mae is going in 2009, the GSE says not to worry, it will be around. But that doesn't mean there won't be changes.
Fannie plans to stimulate its mortgage-backed security (MBS) and delegated underwriting and servicing (DUS) business and broaden the investor base. Its focus will shift from primarily being a multifamily portfolio lender to acting as a lender that provides liquidity to the multifamily market primarily through MBS issuance. It's already reaching out to its DUS lenders and dealers to increase interest in this execution.
That's a good thing, says Dan Fasulo, managing director for New York-based research firm Real Capital Analytics. "The one item that differentiates the multifamily sector from the other property types is the availability of GSE debt," Fasulo explains. "The multifamily market is the closest thing we have to a normal market because the government is in there lending. It's the only game left. Some regional banks and local banks are lending for their own portfolio, but those types of institutions only have a finite amount of capital that they can put out."
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Posted by: Nina Turner