FHFA INVITES COMMENTS ON REDUCING FANNIE MAE AND FREDDIE MAC MULTIFAMILY BUSINESS
The Federal Housing Finance Agency (FHFA) invites public input on reducing Fannie Mae and Freddie Mac’s involvement in the multifamily housing market in 2014. Under a strategic plan it developed in 2012, FHFA expects to reduce its volume of new multifamily business through increased pricing, more limited product offers and stronger underwriting standards. The goal is to reduce Fannie Mae and Freddie Mac’s risk exposure and allow for more private capital in the mortgage market. The public is invited to comment on the potential market impact of the plan, as well as various proposed strategies such as restrictions on available loan terms, streamlined loan products, property financing limits, business activities limits and other options to contract the volume of new multifamily business. Comments are due Oct. 8.