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Release of Multifamily Market Analysis

May 3, 2013

"In 2012, we were asked by the Federal Housing Finance Agency (FHFA) to analyze the potential effects of discontinuing the government guarantee of Fannie Mae's Multifamily business and creating a new, private multifamily company.  We conducted a careful, measured analysis that flowed solely from the assumptions and questions that we were provided by FHFA.

Our analysis found that, without a government guarantee, a successor to our current model would not be able to provide the same level of liquidity to the market throughout market cycles, and likely would not serve many of the markets we have historically served.

For 25 years, Fannie Mae’s Multifamily business has relied on a shared risk model through its Delegated Underwriting and Servicing program to ensure that quality multifamily loans are underwritten by private lenders who share the risk of loss over the life of the loan.  Since 1988, this risk-sharing model has provided over $270 billion in liquidity to the multifamily market, helping finance over 5.8 million units of multifamily housing while attracting private capital.  The government guarantee has allowed us to support the market through all conditions, including the recent economic crisis.”

Contact: Andrew Wilson