Manatt Partner Discusses GSE Cutbacks with
GlobeSt.com
"Multifamily Finance Readies for a Haircut"
GlobeSt.com
March 6, 2013 – Manatt's Steven Edwards, a partner in the
firm's Real Estate & Land Use Practice, spoke to GlobeSt.com
about how the GSE sector will fare if it receives a 10% cut in
financial support.
GlobeSt.com reports that the Federal Housing Finance Agency
plans to scale back government-sponsored enterprises' (GSEs')
multifamily finance operations, announcing that there will be a 10%
reduction target in business volume from 2012 levels. This will be
achieved through some combination of increased pricing, more
limited product offerings and tighter overall underwriting
standards.
Edwards told the publication that a pullback is a reason for
concern. "As the capitalization rates for multifamily properties
continue to fall, one reason that the market has remained viable is
the relative availability of low-interest financing from Fannie Mae
and Freddie Mac . . . It can be expected that any curtailment in
the availability of such financing will not have a positive market
impact."
Read the article
here.