{"id":1004072278,"date":"2013-05-07T06:34:36","date_gmt":"2013-05-07T14:34:36","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004072278"},"modified":"2022-12-08T22:50:38","modified_gmt":"2022-12-09T06:50:38","slug":"fhfa-fannie-freddie-m-f-businesses-not-independently-viable","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/fhfa-fannie-freddie-m-f-businesses-not-independently-viable\/","title":{"rendered":"FHFA: Fannie, Freddie M-F Businesses Not Independently Viable"},"content":{"rendered":"<p><em style=\"font-size: 13px;line-height: 19px\">By Scott Baltic, Contributing Editor<\/em><\/p>\n<p><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2013\/05\/Willy-Walker-2013-Head-Shot.jpg\"><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"1004072283\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/fhfa-fannie-freddie-m-f-businesses-not-independently-viable\/willy-walker-2013-head-shot\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2013\/05\/Willy-Walker-2013-Head-Shot.jpg\" data-orig-size=\"640,410\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;}\" data-image-title=\"\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2013\/05\/Willy-Walker-2013-Head-Shot.jpg?w=640\" class=\"alignleft size-thumbnail wp-image-1004072283\" title=\"Willy Walker 2013 Head Shot\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2013\/05\/Willy-Walker-2013-Head-Shot.jpg\" alt=\"\" width=\"150\" height=\"150\" \/><\/a><span style=\"font-size: 13px;line-height: 19px\">Without their government guarantees, \u201cthe multi-family businesses of Fannie Mae and Freddie Mac have little inherent value,\u201d according to the Federal Housing Finance Agency, which on Friday released two reports, one from each of the government-sponsored enterprises. The reports also conclude that \u201cthe sale of these businesses would return little or no value to the U.S. Treasury and to taxpayers.\u201d<\/span><\/p>\n<p>The reports, which had been completed in December but not released until now, had been written at the direction of FHFA, in connection with its goal of contracting Fannie Mae and Freddie Mac\u2019s market footprint and potentially generating value for taxpayers. The two GSEs had been directed to analyze the viability of their multi-family businesses in the absence of a government guarantee and review the likelihood of these models operating viably on a stand-alone basis.<\/p>\n<p>The two reports are \u201c<a href=\"https:\/\/www.fhfa.gov\/webfiles\/25160\/FNMMF2012ScorecardResponse.pdf\">Analysis of the Viability of Fannie Mae\u2019s Multifamily Business Operating without a Government Guarantee<\/a>\u201d and \u201c<a href=\"https:\/\/www.fhfa.gov\/webfiles\/25161\/FREReport_MF_MarketAnalysis.pdf\">Report to the Federal Housing Finance Agency: Housing Finance Reform in the Multifamily Mortgage Market.<\/a>\u201d<\/p>\n<p>The reports \u201crepresent the first objective, rigorous, quantification of the effect of the GSEs on the multi-family market,\u201d David Brickman, senior vice president and head of multi-family for Freddie Mac, said in a release.<span style=\"font-size: 13px;line-height: 19px\">\u00a0<\/span><\/p>\n<p>\u201cThe high-level findings,\u201d Brickman continued, \u201care that we could provide financing to the multi-family market without a government guarantee, but the markets would feel the cost \u2026 apartment owners, operators and low-income renters would be the hardest hit.<\/p>\n<p>\u201cWe also concluded that any new sources of debt capital would not fill the entire gap left by the GSEs, and the market would experience more frequent and severe boom and bust cycles. In addition, we provided an analysis of a scenario where Freddie Mac could viably operate with a limited government guarantee,\u201d Brickman said.<\/p>\n<p>\u201cThere\u2019s nothing surprising in these reports &#8230; This is pretty much what everyone expected them to say,\u201d Willy Walker, chairman, president and CEO of Walker &amp; Dunlop, Bethesda, Md., told <em>Commercial Property Executive<\/em>. Walker &amp; Dunlop is the nation\u2019s largest Fannie Mae DUS lender and one of the largest Freddie Mac servicers.<\/p>\n<p>If Fannie and Freddie were spun off and had to lend without government guarantees, Walker said, they would lend just like private lenders. For example, they would avoid affordable housing and would operate predominantly in larger markets.<\/p>\n<p>Fannie and Freddie would be worth something substantial on the market with their guarantees \u2014 but not without them, Walker concluded. \u201cThe reports basically reinforce why the federal government is in these businesses.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Without their government guarantees, \u201cthe multi-family businesses of Fannie Mae and Freddie Mac have little inherent value,\u201d according to the Federal Housing Finance Agency, which released two reports, one from each of the government-sponsored enterprises. <\/p>\n","protected":false},"author":882,"featured_media":1004072283,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21742],"tags":[],"class_list":["post-1004072278","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-latest"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - 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