GSE's are going private. I read through the Treasury plan dumped on Friday, definitely sounds like Multifamily is going to be bearing the brunt of the blow.
General Outlines: - Recap the GSE's so they have adequate Liquidity - Increase the spreads so that it creates more competition within the private sector - **Refocus lending on mission housing for "low to moderate income and underserved renters". **This will include reducing acquisitions that don't meet the target. Reducing the cap or going to a market % based cap. Elimination of the green program (this one needs to go for sure). - Inquiry about removing the governmental guarantees backing the MBS originated through the GSE's. They've also floated the idea of separating the SFR from the MF into two seperate entities because they think MF can handle secondary mortgage securitization without implicit government backing.
All you monkey's complaining of the gorilla GSE's might finally be getting some reprive. I just hope that I still have a job.
We will know more once the scorecard gets released in the near future.
