Four takeaways from the FHFA director nomination hearing

On February 14, the Senate Committee on Banking, Housing and Urban Affairs held a hearing to consider Mark Calabria’s nomination as Director of the Federal Housing Finance Agency. Many were eager to hear Calabria’s take on the major changes that may occur under his leadership, especially on how it may affect the multifamily market.

Takeaways from Mark Calabria’s hearing

1. Calabria clarifies that he has not seen anything “that looks like a plan” to administratively reform the GSEs, which contrasts with acting FHFA Director Otting’s statement that Calabria had “signed off” on a Trump administration GSE reform plan
2. Calabria believes that administrative steps should be taken under his leadership, but the fundamental changes should be made exclusively by Congress
3. He supports the 30-year fixed-rate mortgage and affordable housing goals within the confines of the statute
4. Calabria expressed support for the GSE multifamily business, stating that he does not believe that the multifamily business needs the policy changes that the single-family market will require

What would this mean for the multifamily market?

While significant changes at Fannie Mae and Freddie Mac are expected, they will take place primarily on the single-family front, allowing the multifamily market to continue its strong and steady march. Ultimately, all signs indicate that there will be no slowdown in the multifamily business in the near term.

Walker & Dunlop is one of the largest multifamily finance lenders to property owners. To read more about the trends we are see in the multifamily space, download our Quarterly Multifamily Report.