Mortgage Bankers on the Role of GSEs in Multifamily Financing

The Mortgage Bankers Association’s Multifamily Task Force has issued a white paper titled “Ensuring Liquidity and Stability: The Future of Multifamily Housing Finance and the Government-Sponsored Enterprises.” In it they make five recommendations:

  1.  Fundamentally, our nation’s housing policies should reflect the need for liquidity and stability in all multifamily market cycles.
  2. Private capital should be the primary source of financing for multifamily housing with support from a well-defined government-backed insurance program that ensures the market has access to liquidity in all cycles.
  3. Well-regulated entities should be eligible to issue government-backed multifamily securities. These entities should be mono-line, funded by private capital, focused on securitization and serve the workforce rental market.
  4. Stewardship of the existing GSE assets and resources on behalf of taxpayers should be a core consideration of any policy action.
  5. And finally, the long-term liquidity and stability of the multifamily finance system in all market conditions should be the core driver of whether or not the GSEs’ multifamily business should operate on a standalone basis relative to their single-family credit guarantee businesses.

A full PDF copy of the white paper can be found here.