GSEs and Housing Finance Reform: Policy Issue
Overview
One in three Americans are renters, with nearly 22 million households being apartments. The vitality of the apartment industry and its capacity to address the nation's increasing demand for rental housing depends on several factors, but the availability of consistently reliable and competitively prices capital is the most essential.
Through two recent major economic cycles the multifamily line of businesses of the Government Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac, produced strong results. They emerged from these economic events without reporting a loss in any reporting quarter.
More than just performing well, the GSEs’ multifamily programs serve a critical public policy role. Even during normal economic times, private capital alone cannot fully meet the industry’s financing demands. The GSEs ensure that multifamily capital is available in all markets at all times, so the apartment industry can address the broad range of America’s housing needs from coast to coast and everywhere in between. This is especially true during economic downturns where many sources of capital dry up and the GSEs play a critical countercyclical financing role.
Industry Position
The National Apartment Association (NAA), alongside our partner the National Multifamily Housing Council (NMHC), supports the preservation of the mortgage liquidity the GSEs provide across all markets and through all economic cycles. This can be achieved through: (1) maintaining the existing GSE structure; or by (2) a reformed structure that preserves the high quality and market presence of the current multifamily businesses.
As an Owner or Operator, How Does this Affect My Business?
More than just performing well, the GSEs’ multifamily programs serve a critical public policy role. Even during normal economic times, private capital alone cannot fully meet the industry’s financing demands. The GSEs ensure that multifamily capital is available in all markets at all times, so the apartment industry can address the broad range of America’s housing needs from coast to coast and everywhere in between. This is especially true during economic downturns where many sources of capital dry up and the GSEs play a critical countercyclical financing role.
Contact Information
To learn more about this issue, please contact NAA's Public Policy team.