A copy of the full joint statement can be found here.
This announcement received mixed reviews. Some expressed
concern that this could delay housing reform discussions.
As previously reported, tax reform will cause a write-down of
certain assets of the Enterprises that will cause a draw on the line of
credit from Treasury. While this move will have no operational
impact on the Enterprises, it will likely result in negative, simplistic
news coverage when it occurs at the end of the first quarter.
In November 2017 FHFA announced that the 2018 multifamily
lending caps for Fannie Mae and Freddie Mac (the Enterprises)
will be $35 billion for each Enterprise, down from $36.5 billion in
2017. The caps are based on projections of the overall size of the
2018 multifamily originations market, which FHFA expects to be
slightly smaller than that market in 2017.
Finally, In December 2017, FHFA released the 2018 Scorecard
for Fannie Mae, Freddie Mac, and Common Securitization
Solutions and provided additional plans that including details on
the lower production cap. Those details noted that FHFA plans to:
Further support liquidity in the multifamily workforce housing
market and consider market cost differences
Explore opportunities to further support liquidity in multifamily
workforce housing, including through pilots and initiatives
Manage the dollar volume of new multifamily business to
remain at or below $35 billion for each Enterprise
NAA/NMHC will closely monitor all these issues to ensure
the flow of capital to the multifamily industry is not
negatively impacted.
For more Apartment Advocate, please visit www.naahq.org
www.aamdhq.org
FEBRUARY 2018 • TRENDS | 47