Need for Government Guarantee in GSEs' Multifamily Business via DSNews.com

Without a government guarantee, Fannie Mae’s and Freddie Mac’s multifamily businesses would be less viable and “have little inherent value,” according to the Federal Housing Finance Agency (FHFA), the entities’ conservator.

As the FHFA works toward its goal of winding down the GSEs’ presence in the market, the conservator required each GSE to determine whether its multifamily business could operate without a government guarantee.

Both GSEs suggest without a government guarantee, their multifamily units would not be able to support affordable housing programs.

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