Sharon Walker: Multifamily Market Musings
(Sharon Walker is Associate Vice President of MBA’s Commercial/Multifamily Group. She can be reached at SWalker@mba.org.)
The multifamily lending markets are ripe with interesting developments from the GSEs this year, whether it be re-proposed capital rules, LIBOR transition or ongoing responses to COVID-19.
Multifamily Council Revisits FHFA Re-Proposed Capital Rule Announced May 20th
- On July 1st, MBA hosted a Multifamily Council call focused on the Federal Housing Finance Agency’s re-proposed Capital Rule announced May 20th with a 60-day comment period. Finalizing the rule is an important step on the path to getting the GSEs out of conservatorship. MBA is forming a working group to develop response to the proposal.
The Multifamily Council is chaired by Jeff Lee, President of Multifamily with Capital One Commercial Real Estate, as well as Vice Chairs Katie Hubbard, Division Leader, Mortgage and Real Estate Investments with State Farm Insurance and Raelee Jones, FHA Chief Underwriter with Centennial Mortgage.
Federal Housing Finance Agency Provides Tenant Protections
- On June 29th, the Federal Housing Finance Agency announced tenant protections. To help renters in multifamily properties stay in their homes and to support multifamily property owners during the coronavirus national emergency, the Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac are allowing servicers to extend forbearance agreements for multifamily property owners with existing forbearance agreements for up to three months, for a total forbearance of up to six months. Details are posted here.
FHFA Announces New Fannie Mae and Freddie Mac LIBOR Transition Resources
- On May 28th, FHFA announced that Fannie Mae and Freddie Mac have launched new websites to provide LIBOR transition resources including new FAQ documents and a Transition Playbook. FHFA said the websites will “provide key resources for lenders and investors as the Enterprises transition away from the London Interbank Offered Rate (LIBOR).”
LIBOR is expected to be phased out by 2021. According to FHFA, “The Enterprises also announced today updates related to transitioning their Credit Risk Transfer programs and their collateralized mortgage obligations, including the cessation dates for new issuances indexed to LIBOR, and the expected dates for new issuances indexed to the Secured Overnight Financing Rate (SOFR). Details of these important milestones are available on the Enterprises’ LIBOR Transition webpages.
Please contact me directly at swalker@mba.org if you would like additional information, if your firm has feedback or market updates to share with membership or to learn more about MBA’s Multifamily Council.
Sharon Walker joined MBA in 2018 and represents the interests of members active in the multifamily real estate finance sector, including advocacy on multifamily policy issues and overseeing a variety of committees, working groups, councils and events. She has many years of experience in commercial and multifamily real estate, particularly in servicing and asset management. Prior to joining MBA, she was managing director at RED Mortgage Capital, and earlier in her career, she served as vice president of asset management at Walker & Dunlop. In those positions, she managed large portfolios that included multifamily, assisted living and hospitals at MAP-approved lenders.
Walker is a frequent speaker and contributor on panels at industry conferences and meetings, speaking on industry issues and leadership development. She received her B.S. degree in Finance from DePaul University with a concentration in real estate, banking and investments.
