CREFC GSE/Multifamily Lenders Forum

August 1, 2022

GSE Representatives:

Alonzo White
Principal
Fannie Mae

Jason Griest
Vice President, Multifamily
Capital Markets Securitization
Freddie Mac

Together, Emily, Kate and Bill form the “Leadership Working Group” for CREFC’s GSE/Multifamily Lenders Forum. Importantly this group sets the agendas and priorities for the Forum, as well as represents their constituencies on CREFC’s Policy Committee. New this year, Fannie Mae and Freddie Mac have each nominated a representative to assist the Leadership Working Group.

Conversations at CREFC’s June conference focused initially on the GSEs and the impacts of economic volatility: Fed rate hikes, inflation at the highest level in 40 years, Treasury and bond spread unpredictability, and global unrest/Ukraine. Taken collectively, these issues have proved challenging to asset and bond-level valuations, with sellers and buyers pausing to take stock of the market and often putting decisions on hold. To the good, an abundance of available equity in need of deployment suggests this period of price discovery may be short lived.

The post COVID explosion of debt sources for housing investment created strong market competition that often rendered the GSEs less competitive. Even so, there seemed to be enough volume for all debt sources to gain ample traction.

At CREFC’s June Conference, the GSE panel highlighted more conservative underwriting and weakening exit assumptions. In times of economic uncertainty, the agencies tend to stand out as a steady source of debt and liquidity.

A heightened focus on affordable housing demand and trends is top of mind with the need for the agencies to serve their mission goals with providing ample liquidity for affordable and workforce housing, especially in high-cost areas. Sourcing and financing affordable projects is challenging today given lower availability coupled with changing migration trends. Looking ahead for opportunities, GSE forum leadership has discussed ESG issues with a focus on green and social bonds, Single Family Rental (SFR), Build to Rent (BTR), and adaptive reuse.

Challenges for the year include managing the FHFA’s cap and goals for affordability, and whether they will have sufficient remaining liquidity for lenders to serve their non-mission driven clients.

Additionally, these recent policy issues are of interest for GSE/Multifamily Lenders:

To join the GSE/Multifamily Lenders Forum, please register here. For any forum related questions, please contact Kathleen Olin.

 

Contact

Kathleen Olin
Managing Director, Industry Initiatives
202.448.0863
kolin@crefc.org
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2022 CRE Finance Council. All rights reserved.

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