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Posts Tagged ‘private capital’

MH gets Small Bite of Fannie Mae Multifamily

February 4th, 2013 Comments off

Daily Markets informs MHProNews the $33.8 billion in multifamily loans that Fannie Mae and its lenders processed in 2012 builts nearly 560,000 units of housing. “In 2012 the multifamily market was strong, with solid fundamentals remaining in place,” said Jeffery Hayward, Senior Vice President, Head of the Multifamily Mortgage Business, Fannie Mae. “Private capital continued to return to the market, an important step to restoring a more normal lending environment.” In addition, 98 percent of the multifamily loans were through the Delegated Underwriting and Servicing (DUS) program, which requires lenders to have “skin in the game.” Manufactured housing communities received $912 million in 2012 from Fannie Mae, $377 million more than in 2011.

(Image credit: Forbes)

Freshman Congressman (and Banker) Sets Sights on Housing

January 30th, 2013 Comments off

According to nationalmortgagenews, newly elected Representative John Delaney (D-MD) will take his seat on the House Financial Services Committee with an eye on reforming the nation’s housing finance system and reducing government intervention. With a background including establishment of a healthcare finance company and organizer of BancAlliance, a community loan bank cooperative, Delaney sees opportunity to tweak Dodd-Frank. Believing lawmakers can deal with risks in the industry in other ways, he says “We have a lot of implementation to do, and then we have to understand how it all works and continue to make adjustments. These things are really living regulations. You don’t pour the concrete to never look at it again.” He wants to reduce the role of the GSEs because the government tends to crowd out private capital in some cases. As MHProNews has learned, he sees the government’s role as providing an environment for the private sector to become more successful, which will in turn lead to job growth. One of the wealthiest members of Congress, colleagues laud his skill in complex negotiations, a trait that should serve him well in his new role.

(Photo credit: Wikipedia–Rep. John Delaney)

Private Capital, Government Insurance for Multifamily

December 5th, 2012 Comments off

In discussing the future roles of Fannie Mae and Freddie Mac in multifamily housing finance, HousingWire tells us the Mortgage Bankers Association (MBA), in a White Paper, outlined a method for government to attract large private capital. New policies need to be enacted that provide a stability and insurance backstop as the governmental role, and attract private capital as the primary source of funding for multifamily housing. Risk-based premiums would fund the program, as they are paid by those who securitize the loans. As MHProNews has learned, the White Paper asks for ensured access to liquidity in all market conditions, and says MBA will work “with a host of stakeholders and industry groups to advance policy proposals that support a vibrant and balanced housing finance system.”

(Photo credit: HousingWire)

Fed Housing Involvement Will Remain

October 18th, 2012 Comments off

Despite calls by analysts and policy makers following the recent crash to get the government out of the housing business, Kerri Ann Panchuk of HousingWire says the GSEs still account for 85-95% of the outstanding mortgage loans, securitized and unsecuritized. Plus there is a myriad of programs to help homebuyers—Home Affordable Mortgage Program (HAMP), federal block grants, other refinance programs, etc.–that are in direct contrast to The Treasury saying it wanted a mortgage finance system supported by more private capital. Doug Duncan, chief economist for Fannie Mae, says private capital does not see clarity in the new system, and that uncertainty will keep investors away. As MHProNews has learned, government will remain involved for the foreseeable future.

(Image credit: Federal Housing Administration)

Republican’s Plan for Fannie and Freddie

August 13th, 2012 Comments off

HousingWire reports while Rep. Paul Ryan, (R-WI), Gov. Mitt Romney’s running mate for the White House has proposed privatizing “the business of government-owned housing giants, Fannie Mae and Freddie Mac, so they no longer expose taxpayers to trillions of dollars’ worth of risk,” and an end to the $188 billion in bail-outs, major lender and realtor organizations propose private capital in a first loss position but not without some form of government guarantee. Tom Cronin of the Collingwood Group said private capital would be slow to return to the marketplace until risk retention, qualified mortgage and new servicing standards are in place. He does not see that happening anytime soon. MHProNews has learned while Romney has not said what he may have in store for Fannie and Freddie if he wins the presidency, on Sunday’s “60 Minutes” he did say his platform will have its own budget plan he and Mr. Ryan will follow.