‘Foong on Finance': Republicans May Not be Able to Liquidate Fannie and Freddie
- Nov 05, 2010
By Keat Foong, Executive Editor
Will apartment property values be affected by uncertainty over the fate of Fannie and Freddie?
Hessam Nadji, managing director of research and advisory services at Marcus & Millichap Real Estate Investment Services, does not seem concerned, at this point at least. He tells MHN he does not think members of Congress can realistically propose to remove government support from the secondary mortgage market. “It will be a mistake,” he says.
But Alabama’s Spencer Bachus, who is expected to be Barney Frank’s (D-Mass.) replacement as chairman of the House Financial Services Committee, said that the GSEs ought to be liquidated and privatized.
There are a number of reasons for believing that the government’s role in ensuring liquidity for rental housing will not likely be eliminated. Remember also that the Republicans control one, not both, chambers of Congress, and the Democratic-majority Senate may act as a firewall.