By Keat Foong | MHN Online
Players in the capital markets agree that the multifamily sector seems to be on solid footing, with even better years ahead. But there are always undercurrents to be aware of.
One major current in multifamily financing is the pullback in Fannie Mae and Freddie Mac financing, says Hugh Frater, CEO of Berkadia. Rather than being a development of little consequence, that trend could have some important implications for borrowers. It could, for one, portend greater general uncertainty in both capital availability and financing execution.
As the Fannie and Freddie footprint continues to be reduced by the regulators, CMBS and banks will be playing a much bigger role in multifamily financing, says Frater. “What will have to happen is that a lot more of the financing will have to go to CMBS,” he adds.
