The Federal Housing Finance Agency (FHFA) is seeking public input on strategies for reducing Fannie Mae and Freddie Mac’s presence in the multifamily housing finance market in 2014.
In keeping with the goal of contracting the market presence of Fannie Mae and Freddie Mac while simplifying and shrinking their operations, FHFA’s 2013 Conservatorship Scorecard included reducing their volume of new multifamily business by 10 percent relative to 2012. FHFA expects this reduction to be achieved this year through a combination of increased pricing, more limited product offerings and stronger underwriting standards.
FHFA is now evaluating alternatives for reducing Fannie Mae and Freddie Mac’s multifamily businesses in 2014 and is seeking public input on the potential market impact of various strategies. These include:
- Restrictions on available loan terms;
- Simplification and standardization of loan products;
- Limits on property financing;
- Limits on business activities; and,
- Other options that FHFA should consider to contract the Enterprises’ multifamily businesses.
Click here to review a document outlines these specific alternatives proposed by FHFA. Interested parties are invited to answer several questions related to FHFA’s objective to reduce its exposure to multifamily housing. Input must be received within 60 days or no later than Oct. 8, 2013 and should be submitted to Federal Housing Finance Agency, OHRP Multifamily Housing Policy, 400 7th Street, S.W., Room 9-261, Washington, DC 20024 or via email to: email@example.com.