MBANow: Thomas Kim on Multifamily GSE Reform
The Mortgage Bankers Association released a new MBANow video featuring MBA Senior Vice President of Commercial/Multifamily Thomas Kim, who discusses how proposed reforms to Fannie Mae and Freddie Mac would impact the multifamily industry.
The video can be viewed at https://www.youtube.com/watch?v=8cftJGHdURA&feature=em-uploademail.
Kim said the secondary mortgage market plays an important role in the “rich ecosystem” of commercial/multifamily real estate finance.
“One of the great things about multifamily finance, and commercial real estate overall, is the multiple capital sources that finance multifamily buildings,” Kim said. “That is vitally important to the competitive landscape. Fannie Mae and Freddie Mac have very robust multifamily business lines and working with their partners, they are the largest dedicated finance institutions in the country.”
MBA recently released a working paper on GSE reform, Creating a Sustainable, More Vibrant Secondary Mortgage Market (https://www.mba.org/issues/gse-reform). Kim says the paper has broad implications for the multifamily sector, including liquidity, private capital and competition and noted a “substantial portion” of the paper addresses affordable housing.
“We take a unique, agnostic view as it relates to homeownership and rental housing,” Kim said. “We very much believe that the new guarantor entities would have responsibility to provide financing for affordable housing, including in the rental market, and certainly the intellectual capital and expertise they already have going forward should be leveraged so that workforce housing, affordable targeted rental housing is substantially supported going forward.”
Other videos in the MBANow series can be viewed at the MBA YouTube channel, https://www.youtube.com/watch?v=Swk2VUJeZFI&feature=em-uploademail. The videos are also available on the MBA Insights landing page, https://www.mba.org/publications/insights/insights-publication##SubscriberID####RND##&PageID=21109.
