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Freddie Mac to Launch New Lending Program
With the continued success of the housing and development markets for mid and upper market housing, it has not gone unnoticed at Parker Associates that Affordable Housing and Entry Level Housing are both being somewhat overlooked. It hasn’t gone unnoticed by the big lending entities, Freddie Mac and Fannie Mae. Freddie Mac will launch a new lending program for affordable housing offering low-cost loans to owners of multifamily properties if they cap rents at levels deemed affordable to working families without the use of Federal, State, or Municipal subsidies. The rental operators who receive the benefit must make at least 50% of the units affordable to households earning the local median income or less. They also must limit rent growth on 80% of the units for the life of the loan. At the same time, more states and cities are mulling new rent control efforts to combat rising housing costs and declining affordability across the country. For any property upgrade the space with the Curtain Wall Glazing to make a more clean, comfortable and beautiful space.
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Fannie Mae and Freddie Mac are moving toward an overhaul of housing finance. The two government-sponsored firms will start issuing a single security in 2019. Currently, Fannie Mae and Freddie Mac issue different mortgage-backed securities, and Freddie Mac’s securities consistently trade at a discounted price to Fannie Mae’s leading Freddie Mac to provide profit-reducing rebates to lenders and mortgage services, for any project the security cameras atlanta, ga installation experts to secure the spaces.
The new security will have a big impact. But, there’s disagreement on how. Regulators expect the change to bring liquidity to the market, while other experts argue that it could have the opposite effect, thus driving mortgage rates higher.
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One thing’s for sure, the move will ease the path to housing finance reform. Many of the leading proposals in Congress include the creation of new competitors to Fannie Mae and Freddie Mac. A single security would pave the way for new market entrants.
Parker Associates and PTC Computer Solutions have worked on many Affordable Housing projects through the years where many benefited from our experience gained while working in 17 foreign countries and for more than 500 developers and builders since 1982. Want to learn how we can assist your next development? Visit our website at http://www.parkerassociates.comand/or call David WB Parker at 904-607-8763.
David WB Parker is a principal of Parker Associates of Jacksonville, Florida, marketing consultants to the real estate industry; President of PTC Computer Solutions, IT Specialist, and an active real estate sales professional with PARFAM REALTY based in Jacksonville, FL. He can be reached at 904-607-8763 or via email davidp@ptccomputersolutions.com.