The midterm elections may have a big impact on the real estate recovery. At the American Bankers Association meeting in Boston a member on the right leaning CATO institute stated that if the Republicans take Congress in November the Republicans will pass a resolution in short order to force both Freddie and Fanny into receivership. The potential for significant change in the residential and multifamily financing structure of the United States is very possible. For over 30 years these quasi governmental organizations have been a core feature of the American financing landscape for single family and multifamily homes in the U S.
The current situation of poor balance sheets for both organizations has resulted in the loss of Republican confidence in both organization and if either are forced into receivership the only sure bet will be disruption to the marketplace.
The current situation of poor balance sheets for both organizations has resulted in the loss of Republican confidence in both organization and if either are forced into receivership the only sure bet will be disruption to the marketplace.
-Rhyne Brown
Rhyne Brown is Executive Vice President of Client Development and leads NAI Global’s Special Asset Solutions group, a professional real estate practice that is focused on meeting the needs of banks and special servicers active in managing distressed assets and REO.
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