FHFA Seeks Comment On Strategies To Reduce Fannie Mae, Freddie Mac Multifamily Role

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On August 9, the FHFA sought public input for reducing Fannie Mae’s and Freddie Mac’s presence in the multifamily housing market. In its request for public comment, the FHFA set forth various potential strategies, and is considering (i) placing restrictions on available loan terms (e.g. ceasing providing five-year loan terms), (ii) simplifying and standardizing loan products (e.g. establishing common loan terms, product features, and underwriting requirements), (iii) imposing new limits on property financing (e.g. restricting maximum financing amount), and (iv) imposing new limits on business activities (e.g. prohibiting the purchase of seasoned loans or loan pools). Comments on the proposals are due by October 8, 2013.