Fannie Mae-No Politics (FNMA)

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HUGE NEWS I THINK WE WILL BE OVER $ 100.00 A SHARE IN THE FUTURE IF I AM READING THIS RIGHT. Fannie and Freddie's securitized market share, which could eventually revert to levels not seen since before the run-up to the CMBS market peak. At the peak of market in 2007, the conduit market's share of the $36 billion securitized multifamily loan market was more than 78%. As the financial markets spiraled, that trend reversed and the GSEs became the primary source of loan production, dominating securitized new issues with more than 95% market share.



Kroll Bond Rating Agency: FHFA Slowdown May Spur Multifamily Resurgence in Conduit CMBS

12/4/13 | BusinessWire

Kroll Bond Rating Agency (KBRA) released a report today discussing the FHFA slowdown and its potential outcome.

The Federal Housing Finance Agency (FHFA), the conservator and regulator of Fannie Mae (Fannie) & Freddie Mac (Freddie), has begun to implement strategies to reduce its multifamily footprint. As a result, Kroll Bond Rating Agency expects a gradual decline in Fannie and Freddie's securitized market share, which could eventually revert to levels not seen since before the run-up to the CMBS market peak. The percentage breakdown of multifamily loans funded as a component of the new issue structured finance market has oscillated between CMBS conduit deals and transactions backed by Government Sponsored Enterprises (GSEs), with the GSEs ramping up production when the private label market was frozen. At the peak of market in 2007, the conduit market's share of the $36 billion securitized multifamily loan market was more than 78%. As the financial markets spiraled, that trend reversed and the GSEs became the primary source of loan production, dominating securitized new issues with more than 95% market share.

The report, FHFA Slowdown May Spur Multifamily Resurgence in Conduit CMBS, can be found at www.krollbondratings.com.

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