Research Report The GSEs' Shrinking Role in the Multifamily Market
Karan Kaul
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This brief examines the GSEs’ historical and current role in financing multifamily housing and finds that their post-crisis role has declined to more normalized levels. It also finds that even as the GSEs have continued to meet or exceed their multifamily housing goals in recent years, financing for certain underserved segments of the market has fallen steeply. Given these declines, policymakers and regulators should consider maintaining or increasing the GSEs’ footprint in the multifamily market, especially in underserved segments. Though the recent tools employed by the Federal Housing Finance Agency (FHFA) to slow the declines in GSE volume have been somewhat effective, they alone likely won’t prevent the GSEs’ role from shrinking further.
Research Areas Nonprofits and philanthropy Housing finance Housing
Tags Federal housing programs and policies Housing markets Housing and the economy Multifamily finance Housing finance reform Multifamily housing Nonagency securitization Housing affordability Finance
Policy Centers Metropolitan Housing and Communities Policy Center Housing Finance Policy Center
Research Methods Performance measurement and management