Multi Housing News May 2012 : Page 7

There is no specifi c or planned date by which a gradual pull-back in the Enterprises’ multifamily production is expected since this largely depends on recovery of the private fi nance market which, as was noted, appears to be well underway. How well are Fannie Mae and Freddie Mac’s multifamily businesses operating under conservatorship? Why is the current arrangement not viable for the long-term? The Enterprises’ multifamily business activities continue to show very strong performance, with positive returns and very low defaults and credit losses. They have also successfully managed their term loan refi nance risk, despite cap rate volatility. As noted in the strategic plan, there are many posi-tive aspects of the Enterprises’ current multifamily businesses that should be considered for preserva-tion in any future housing fi nance system. Is there a brain drain at the GSEs’ multifamily operations? What actions are being taken to mitigate a possible loss of valuable and high-quality staff due to an uncertain future, cuts in staff compensation and negative rhetoric coming from politicians? There have been some senior staff departures from the Enterprises’ multifamily business units, but these have been relatively fewer than from their single-family businesses. In fact, many of the Enterprises’ long-term multifamily staff mem-bers remain in place, which has supported conti-nuity in their business operations. The multifam-ily units have also had success in attracting very high-quality replacements for those staff members who have departed, in part because the multifam-ily businesses continue to be so high-performing. What is the current status of the Pilot REO Property Sales program? How would you describe the degree of interest and response from private investors? The single-family REO-to-rental sales program has shown very strong interest among investors. FHFA is currently working with the Enterprises to develop specialized multifamily fi nancing programs to support these sales, which are expected to be an-nounced later this year. MHN To comment on this story, e-mail Keat Foong at kfoong@multi-housingnews.com PRUDENTIAL MORTGAGE CAPITAL COMPANY WE GET IT. DONE. Whatever real estate ﬁnancing challenge you’re facing, chances are, we’ve seen it. And solved it. Prudential Mortgage Capital Company combines one of the industry’s most experienced teams with extensive lending capabilities and consistent performance in all kinds of markets—including $2.9 billion in multifamily ﬁnancing in the U.S. and ¥13.5 billion in Japan in 2011. So you can be conﬁdent that we have the talent and resources to get your deal done, time and again. Prudential Mortgage Capital Company’s multifamily loan programs include: Fannie Mae DUS FHA Fannie Mae Affordable loans Freddie Mac Targeted Affordable loans TM loans ® Freddie Mac Program Plus WE GET IT. DONE. prumortgagecapital.com 1-888-263-6800 Life Company loans Agency Getaway Program loans Conduit International © 2012 Prudential Financial. Prudential and the Rock logo are registered service marks of The Prudential Insurance Company of America and its afﬁliates. www.multi-housingnews.com | May 2012 7