Reforming America’s Housing Finance Market

An important report was issued by the Obama administration last week entitled “Reforming America’s Housing Finance Market”. This plan dramatically transforms the role of government in the housing market and of FNMA, Freddie Mac and FHA in particular.

Click here to download the report (pdf).

We believe this plan can have the following significant impact on the apartment industry:

• Higher demand for apartments as the dream of home ownership becomes more difficult.
• Financing costs will increase and some valuations decline as the government interest rate subsidy is phased out.
• New apartment financing sources will surface as “agency” lenders exit the market.

Every apartment owner needs to understand what is coming and the long range impact on our business.

J. Mark Madderra

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