Multifamily GSE Lending Reform: Potentially Disruptive and Inherently Valueless via CoStar Group

Without some form of government guarantees, the multifamily lending businesses of Fannie Mae and Freddie Mac have little inherent value, so conclude Fannie Mae and Freddie Mac in reports prepared for their conservator, the Federal Housing Finance Agency (FHFA) and released this week.

The reports further conclude that the sale of these businesses would return little or no value to the U.S. Treasury or taxpayers, while potentially being highly disruptive to the commercial real estate markets.

The reports highlight the fundamental tensions inherent in the government-sponsored enterprise model that policymakers will have to consider as part of housing finance reform.

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