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Government Sponsored Organizations

What role are government-sponsored organizations playing in the real estate market today, and does that represent more of the same or a change in what’s been going on? Tom Fink stresses that government-sponsored agencies are still very important factors in today’s real estate marketplace, and the multifamily market, Freddie Mac and Fannie Mae, are still the primary source of capital. “We continue to see a lot more of private capital from insurance companies, equity funds trying to buy and invest in the multifamily space,” he says, “but they still provide a huge chunk of the capital.”

Government-sponsored organizations still continue to issue a lot of securities. In fact, government-sponsored entity multifamily securities are now a new asset class in the Barclays performance indices, which are used to track the fixed income market. So, they are around to stay for a while. 


Transcript

Aaron Kaiser: Hello, I'm Aaron Kaiser, partner at EisnerAmper and Co-Chair of our firm's Real Estate Practice. It's my pleasure today to introduce Tom Fink, Senior Vice President and Managing Director of Trepp LLC. Trepp was founded in 1979 and is the leading provider of information analytics and technology to the commercial mortgage backed securities, commercial real estate and banking markets. Welcome. What role are the government sponsored organizations, the Freddies and the Fannies of the world, playing in the market today, and how does that represent... Does that represent more of the same, or a change from what's been going on?
Tom Fink: I think the government's sponsored agencies are still very important factors in the marketplace today. In the multifamily market, Freddie Mac and Fannie Mae are still the primary source of capital.


Aaron Kaiser is an Audit Partner and member of the Professional Practice Group and a leader in the Real Estate accounting services group.

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