Acting Director Edward DeMarco of the Federal Housing Finance Agency recently announced the appointment of Wanda DeLeo as the Deputy Director leading the Office of Strategic Initiatives.
The office will work to coordinate the FHFA's recently-issued plan relating to the conservatorship of Fannie Mae and Freddie Mac. The long-term status and fate of the two government-sponsored enterprises is a growing concern for many real estate industry stakeholders, lawmakers and other individuals.
The strategic plan sets three goals. The first is to build a new infrastructure for the secondary mortgage market. The second is to reduce the role the agencies play in that market and the third is to continue actions meant to reduce foreclosures. The GSEs play a massive part in financing for the multifamily sector of the real estate industry, so this plan and its execution is likely to be a determining factor in the long-term outlook for owners, rental property management firms and other stakeholders.
Beyond the strategic plan, legislative action is likely to be required in order to set policy relating to the GSEs. While many favor reducing their role, experts say it will take time for private capital to expand.