From Multifamily Executive:
Fannie lost $5.1 billion in the three-month period, while Freddie saw a $4.4 billion loss, resulting in the companies asking for a combined additional $13.8 billion in government aid. Sadly, the resulting uproar around the losses, coupled with the sizable compensation paid to the companies’ top execs, is nothing new.
What isn’t being talked about in the debate, however, is the phenomenal performance of the multifamily business lines of the government-sponsored enterprises (GSEs). Not only are the multifamily divisions profitable and making money for the taxpayers that bailed them out, but the delinquency rates and amount of REO are miniscule in comparison to the GSEs’ single-family business.
What’s more, the multifamily divisions are also mission-rich: While the multifamily book is only a fraction of the single-family portfolio, the amount of affordable housing units financed by the GSEs last year tilts heavily, and disproportionately, in favor of the apartment operations.