In my commentary in October 2012, I discussed the first in a series of papers on the multifamily housing market that are being developed by Hoyt Advisory Services (HAS). Fannie Mae engaged HAS to conduct the research and to document their findings.
Today, the second of these papers is being published: The Effect of Transportation, Location, and Affordability Related Sustainability Features on Mortgage Default Prediction and Risk in Multifamily Rental Housing (PDF) by Dr. Gary Pivo, Professor of Urban Planning and Professor of Natural Resources and the Environment at the University of Arizona.
This paper examines the relationship between certain sustainability features and default risk in multifamily housing. With the exception of housing affordability, the features studied are a function of property location. Dr. Pivo concludes that sustainability features should be given greater consideration in the loan origination process.
Senior Vice President
Multifamily Mortgage Business
May 29, 2013
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