Trump 2.0: The First 100 Days | United States

Privatization of GSEs GSE Share of Multifamily Lending Activity

Impact on CRE

• Fannie and Freddie have a capitalization of a bit less than $150 billion, far short of the ~$300 million capitalization required to exit conservatorship. • The GSEs have been a major player in multifamily financing over the past decade. They represented over half of all multifamily lending activity from 2015-2024 and continue to act as a “lender of last resort” for the multifamily industry, as indicated by the 10% jump in market share during the pandemic. • Ultimately, privatizing the Agencies will require coordination across all three branches of government, alongside the private market. Stability in the financial system and the reduction in government involvement will need to be balanced delicately to ensure a smooth transition out of conservatorship. • The latest guidance from the administration is to focus on reducing fraud and promoting affordability, instead of privatization. Privatization is years away if it does become a higher priority.

2024

45%

2023

47%

2022

34%

2021

36%

Recessions (GFC/Pandemic)

59%

Pre-Pandemic (2017-2019)

48%

Pre-Conservatorship (2000-2007)

21%

0% 10% 20% 30% 40% 50% 60% 70%

Source: MSCI Real Capital Analytics

CONTENTS

CONTENTS

Cushman & Wakefield