Sequestration could impact housing bond issuers: Moody’s via HousingWire

The government's sequestration process mandates roughly $1.2 trillion in spending cuts over a 10-year period, with $85 billion set to occur in the next six months.

From a broad view, the ongoing sequestration is likely to have a low to moderate impact on public financing housing bond issuers, Moody’s Investors Service claims in a new report.

Over time though, any reductions in federal employment, as well as any sequester-related economic downturn, will have the largest impact on housing programs that are extremely sensitive to household financial stress, including single-family and multifamily mortgage programs.

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