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:
- Fundamentally, our nation’s housing policies should reflect the need for liquidity and stability in all multifamily market cycles.
- 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.
- 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.
- Stewardship of the existing GSE assets and resources on behalf of taxpayers should be a core consideration of any policy action.
- 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.