Monday, September 8, 2008

Experts Hopeful Fannie/Freddie Takeover Won't Impact Apartment Lending

Doug Bibby, President of the National Multi Housing Council (NMHC), issued the following statement concerning the Treasury Department's plan to put Fannie Mae and Freddie Mac into conservatorship.

"Fannie Mae and Freddie Mac have played a critically important role in the apartment industry, and we do not expect that to change with the recent actions taken by the Treasury Department. It is important to note that neither company faces an immediate crisis. Rather, these actions were taken largely to restore investor confidence and keep the markets working.

"The impact of the Treasury Department plan on the apartment sector remains to be seen as the details are worked out, but we are optimistic that there will be little to no disruption in the companies' multifamily operations.

"The government action is directly related to the companies' single-family investments and their efforts to weather the ongoing decline in that sector. The multifamily sector, on the other hand, remains strong and is actually producing profits for the firms that are helping rebuild their capital reserves. As a result, we expect them to remain active in the multifamily market.

NMHC is a national association representing the interests of the larger and most prominent apartment firms in the U.S. NMHC's members are the principal officers of firms engaged in all aspects of the apartment industry, including ownership, development, management and financing.