Manatt Partner Discusses GSE Cutbacks with

Manatt Partner Discusses GSE Cutbacks with

"Multifamily Finance Readies for a Haircut"

March 6, 2013 – Manatt's Steven Edwards, a partner in the firm's Real Estate & Land Use Practice, spoke to about how the GSE sector will fare if it receives a 10% cut in financial support. reports that the Federal Housing Finance Agency plans to scale back government-sponsored enterprises' (GSEs') multifamily finance operations, announcing that there will be a 10% reduction target in business volume from 2012 levels. This will be achieved through some combination of increased pricing, more limited product offerings and tighter overall underwriting standards.

Edwards told the publication that a pullback is a reason for concern. "As the capitalization rates for multifamily properties continue to fall, one reason that the market has remained viable is the relative availability of low-interest financing from Fannie Mae and Freddie Mac . . . It can be expected that any curtailment in the availability of such financing will not have a positive market impact."

Read the article here.



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