Title says it all. I know this administration wants to take Fannie and Freddie out of conservatorship. I know this would take awhile to happen but would Fannie still be just as competitive with other banks without the government guarantee specifically on the multifamily side? Thanks for your thoughts in advance.
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Based on the most helpful WSO content, pursuing opportunities at Fannie Mae can be a mixed bag depending on your career goals and the current market dynamics. Here are some key considerations:
Competitiveness Without Government Guarantee: Fannie Mae's competitiveness, especially on the multifamily side, is heavily tied to its government guarantee. Without it, Fannie might face challenges competing with private banks and other lenders. However, the multifamily sector benefits from Fannie and Freddie's focus on affordable housing, which could still provide a niche advantage even in a restructured environment.
Career Opportunities and Challenges: Getting hired at Fannie Mae, particularly in their multifamily group, is notoriously difficult. As noted in WSO threads, HR often screens resumes, and the process can feel random. Even with relevant experience, callbacks can be rare. This suggests that breaking into Fannie Mae requires persistence and possibly networking with current employees or alumni.
Market Dynamics and Administration Goals: The current administration's push to take Fannie and Freddie out of conservatorship could lead to significant changes in their operations. While this process would take time, it introduces uncertainty about the long-term stability and structure of the organization.
Alternative Paths: If your goal is to work in GSE underwriting or multifamily lending, consider delegated underwriters like Wells Fargo, PNC, or Prudential. These firms often provide a more accessible entry point into the field and still offer exposure to GSE-backed lending.
In summary, while Fannie Mae offers strong credibility and experience in the real estate world, the uncertainty surrounding its future and the competitive hiring process may make it a challenging but potentially rewarding opportunity. If you're set on this path, be prepared for a rigorous application process and consider alternative routes to gain relevant experience.
Sources: FHA/FNMA/FHLMC Underwriter, Why not GSE lending? Stigmas?, https://www.wallstreetoasis.com/forum/real-estate/fannie-maefreddie-mac?customgpt=1, GSE & Privatization: How do you think they MF lending realm will be affected?, Alternative Lenders & the End of Risk Taking for Banks - Opportunity or Risk?
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would their transaction volume pick up- the lenders like Greystone, Walker & Dunlop, berkadia
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Thanks for sharing your experience. Is this a typical career trajectory for someone in agency lending — could they transition into being an originator down the line? I'm also curious about salary projections and whether there's a good path for growth in this space. After your time in DUS lending, what other exit opportunities did you consider? also, what do you mean by front end across all asset classes and debt sources.
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Honestly if they do end up ending the conservatorship and they are no longer government backed rates will change across the board. The two most probable scenarios are they stay status quo and they release the conservatorship but keep implicit guarantees. It would be a great way to learn, just don't get stuck there. Jump once you have learned as much as you can.
They are pulling back job openings right now. Also, both Agencies are now required 5 days a week in the office. They don't have the room for the employees as both downsized office space during the pandemic and people moved remotely. Heard today was crazy at Fannie with people returning, and Freddie returns May 1st. Fannie and Freddie just did big Screening/production coverage hiring as someone mentioned at CrefC to a publication in Miami that turn times were unbearable. So both agencies hired a bunch in credit and screening.
I don't know how much in the way of open jobs there are on the front end for any lender. If you are in AM, UW, compliance I'd assume they are fine. Well compliance maybe not.
I think it depends on what you want to do or what area you are in.
Are Fannie Mae and Freddie Mac, or their lender partners, pulling back on job openings right now?
Yes and no. Know and including myself had different roles pulled back 1 at Fannie and 2 at Freddie. They might slow down their already slow pace as they bring everyone back in the office as they don't have the room for the employees. I have heard they will hold hiring for a bit as they have natural turnover from RTO as many people moved and were allowed to. The lenders are starting to hire again as they all did their layoffs over the last 2-3 years prior to this. Seeing jobs in the GSE space pick up.
I just want to point out that planning your entire career based on the politics of the next 21 months feels a little shortsighed
Yes true but hearing rumblings of a 15% cut at Fannie and most likely a similar cut at Freddie. Many people moved during the pandemic, so as of now I wouldn't go there. 6months from now once the turnover from layoffs, reorg, and people leaving because they don't live near a office happens it'll be primed to happen. So the OP shouldn't leave a current job to go to one that is uncertain. Let alone the hiring takes forever and might as well wait it out.
I really don't think they'll hire someone and immediately lay them off.
I'm not saying put every other job opportunity on the back burner. But if you want to be there and it's the right move, I wouldn't worry about what happens in 6-12 months. You can always make that case. If he gets hired, the job isn't uncertain.
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