Recap with Brandon Roth Ep. 7 - Agency Lending (Paul Lewis - IPA)
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Sep 21, 2024 In this captivating discussion, Paul Lewis, National Director of Agency Financing for IPA Capital Markets, shares his extensive experience from over 23 years at Fannie Mae. He sheds light on how Fannie Mae and Freddie Mac bolster the multifamily lending market, especially during economic crises. Paul explains the intricacies of the securitization process, agency underwriting nuances, and the vital factors influencing pricing. Listeners will feel enlightened as he navigates the complexities of guarantor requirements and emerging trends in agency lending.
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Agency Role
- Fannie Mae and Freddie Mac are secondary market providers, purchasing and securitizing loans to maintain housing liquidity.
- Established in 1938 and 1970, respectively, they act as crucial backstops during economic downturns.
Agencies in the Pandemic
- During the COVID-19 pandemic, agencies remained active while other lenders retreated.
- Their combined market share even reached nearly 60%, underscoring their role as liquidity providers.
Agency Caps and Goals
- Fannie Mae and Freddie Mac each have a $70 billion annual cap, totaling $140 billion.
- While they finance various properties, 50% must meet affordable housing goals.