FHFA: Fannie, Freddie Multifamily Business Hold ‘Little Value’ Without Government Guaranty; 1Q Earnings Jump
May 10, 2013
Fannie Mae’s and Freddie Mac’s multifamily businesses hold “little inherent value” and would be less viable absent the government guarantees the two government-sponsored enterprises currently enjoy, according to the Federal Housing Finance Agency. In a new report, the agency also noted that the sale of the GSEs’ multifamily businesses would yield “little or no value” to the U.S. Treasury or to taxpayers, while at the same time it could be a huge disruption to the commercial real estate markets. “The new ‘stand-alone’ businesses would primarily depend...
The creation of a U.S. sovereign wealth fund could grease the skids for an end to the conservatorships of Fannie Mae and Freddie Mac.
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