Uncertain fate of GSEs causes concern in multifamily sector

Multifamily industry stakeholders and experts are considering the potential impact the industry will experience when the federal government determines how to deal with Fannie Mae and Freddie Mac.

Panelists at the Apartment Finance Today Conference noted that the government-sponsored enterprises account for more than 60 percent of the market for permanent multifamily debt, making uncertainty a major concern for the industry. While there are no signs indicating that changes are imminent, stakeholders expect them to occur eventually, and the lack of information on the nature of those changes and what form they are likely to take has some worried, according to AFT.

In their current form, some experts told the news source the GSEs are having trouble conducting business in a quick and efficient manner, despite the central role they occupy. Between that and the concern over what will happen to them, many are looking for alternate sources of financing.

While the future of the GSEs is unlikely to have a direct impact on rental property management firms, it could become more difficult for developers, investors and apartment owners to operate without them, unless they are replaced with entities prepared to perform similar functions.