Fannie and Freddie Caps - Affordable Multi
Did anyone see the latest on Fannie/Freddie's new caps, which are more focused on affordable housing? How do you think this impacts the debt markets?
Trending Content
| +48 | Being asked to stay behind and train my replacement | 14 | 2d | |
| +36 | New Comp Database - Google Form (Now with Data Validation) | 24 | 2h | |
| +33 | Best CRE brokerage firms | 24 | 6h | |
| +30 | What does REPE actually do? | 12 | 7h | |
| +26 | Starting University LP Fund | 6 | 2h | |
| +24 | Public Homebuilders | 9 | 10h | |
| +22 | REPE/Development GPA | 15 | 23h | |
| +17 | MSRE/MSRED with no RE experience; Naive to think I’ll land a job afterwards? | 4 | 2d | |
| +16 | UC Berkeley MRED vs Columbia MSRED? | 2 | 4d | |
| +16 | Restoration Hardware | 4 | 2h |
Career Resources
Says business as usual. The MBA is expecting the MF origination's market to be $390B for 2020, so the GSE's will still be allowed to go up to 42.5% of that market (which is where they are currently at for Market Share).
The kicker of this all is the $37B required by FHFA for each agency and it has to be affordable without any green loans. So there will be strong appetite from the GSE's for the deals that are low income and affordable.
I think this has big implications on the value-add side, which usually takes advantage of their green program. By capping green business AND focusing on affordable properties, value-add borrowers will likely have to look elsewhere.
If it's true value-add (taking outdated and under performing assets in strong markets and infusing capital) then there should be some natural existing affordability at the property since it's lagging behind the general market.
What this new change will impact is lipstick-on-a-pig "value-add" players that make surface level improvements and juice NOI to get to an exit as quickly as possible. Their strategy has recently been to market the "remaining upside", aka the actual cap-ex, to push their re-sale value and offload the risk to a new owner. That sale scenario will likely then lack natural affordability and may make the deal less attractive to the agencies.
Illo illo fugiat eaque facilis consectetur sed et sed. Voluptas quo assumenda sint assumenda atque eum placeat. Corrupti quo et pariatur eos voluptas a. Reiciendis et sit eaque dicta. Quia placeat minima et veniam tempora distinctio error. Minus qui et incidunt aliquid aliquam. Labore sint iusto est sunt.
Et veritatis eaque qui ut minus ut ut. Vero et ut repellendus. Quia id laborum molestiae esse nobis est. Et omnis qui ex aliquid dolor omnis.
Unde enim officiis eum consectetur ut saepe dicta. Possimus magni consectetur distinctio qui. Quaerat est nam modi iure nihil architecto.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...