Multifamily Lending Still in Good Health

Sarasota Herald-Tribune (FL) (07/28/08) P. D8
Fannie Mae and Freddie Mac's multifamily housing loans are performing well because they are underwritten based upon each property's cash flow. Phil Weber, senior vice president of Fannie Mae's multifamily division, reports that the government-sponsored enterprise invested $20 billion in multifamily housing during the first six months of this year and is now looking to expand its product offerings. Freddie Mac, meanwhile, recently launched a multifamily housing initiative focusing on student housing to increase the amount of rental-housing loans it purchases. Multifamily underwriting is trickier than single-family lending, partly due to the fact that such ongoing costs as parking lot repairs and heating and air-conditioning maintenance are variable and difficult to estimate.