Can the Private Sector Step Up if the GSEs Step Down? via Multifamily Executive Magazine

Fannie Mae and Freddie Mac were there when the industry needed them most, but where will they be during the next downturn?

The government-sponsored enterprises (GSEs) have been the picture of consistency over the last four years, as the private sector—banks, life companies and conduit lenders—hunkered down and licked their wounds.

This counter-cyclical liquidity became the silver lining of conservatorship. During the darkest days of the downturn, every borrower had the agencies on speed-dial. After all, if it hadn’t been for the GSEs, cap rates would’ve risen dramatically, and values would’ve plunged, much as they did in every other commercial real estate sector.

Read more...Can the Private Sector Step Up if the GSEs Step Down? - Debt - Multifamily Executive Magazine