Everything you wanted to know about the Urban Core, Uptown and Downtown Dallas, Texas & Dallas Ft. Worth Area Real Estate - Its growth, prosperity, setbacks and unprecedented revitalization is told here...Randall Turner of Harvard Companies, Inc 214-373-0007, 3500 Oak Lawn Avenue, Suite 325, Dallas, Texas 75219
Wednesday, May 27, 2015
Freddie Mac & Fannie Mae Position in the Market: What to Expect Through 2015
positioning of Freddie Mac and Fannie Mae, discuss what this means for
you and touch on what you might be able to expect this year.
Background and recap of what
happened in 2014/early 2015:
Freddie Mac and Fannie Mae were both given $30
billion volume caps for multifamily production, for the 2015 calendar
The 2015 volume cap is a sizeable increase for
Freddie Mac compared to their former $25.9 billion cap, and slightly
less than Fannie Mae’s $30.6 billion (although Fannie had not come
close to their cap the last 2 years).
Freddie Mac and Fannie Mae both rolled over into
2015 large pipelines from 2014. This included about $14 billion for
Freddie Mac and about $8 Billion for Fannie Mae.
Both Freddie Mac and Fannie Mae have had robust
starts to 2015 and both currently sit at $25-26 billion in 2015 YTD
closed and committed volume.
Both Freddie Mac and Fannie Mae have affordable
Housing goals that both admit to being “behind” in achieving their
In response to this, and as an attempt to slow the
pipeline, both Freddie Mac and Fannie Mae have increased spreads 35-40
bps and dialed back interest-only over the past 10 days.
Both Freddie Mac and Fannie Mae have petitioned the
FHFA (regulator) for additional cap volume. (above the $30 billion)
Both Freddie Mac and Fannie Mae are awaiting a
response from the FHFA to their request for an additional volume cap
It is speculated that both may receive (in the best
case scenario) an extra $5 Billion in volume cap.
A $5 billion increase will not allow them to fully
return to the level of activity prior to the last 30 days, but will
allow both to stay “in the market.”
What you can expect going forward:
Freddie Mac and Fannie Mae “rack” pricing will not
win them any business
Freddie and Fannie are going to triage their
remaining volume cap allocation (including any additional volume cap
that may be approved by the FHFA)
Waivers from “rack/matrix” pricing in the form of
better spreads, interest-only and other winning deal terms will be
Loan requests that meet the mandated affordability
Loan requests from “loyal, repeat clients”
Loan requests that are “very conservative” – say
50-60% LTV; 1.50x DSC, etc.