What are people talking about at this week’s MBA CREF/Multifamily Housing Convention & Expo in San Diego? Here’s a quick rundown of three topics that have come up on panels so far:
1. Senior housing
Nursing homes are being held to stricter standards now and staffing guidelines have changed, along with the Medicare reimbursement system. While this may improve patient outcomes, it can also be expected to give underwriters a pretty big headache.
“I don’t envy anyone who is an underwriter,” Steve Ervin, senior vice president at Berkadia, said on a panel on trends in health care and senior housing. “Ultimately the goal will be to work toward patient outcomes, but the next six months will be hard.”
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2. Competition among lenders
Panelists said they are seeing increased competition among lenders, with banks and life insurance companies competing with CMBS lenders for the same loans instead of relying on traditional market segmentation.
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3. The future of the GSEs
The market for multifamily rentals is “likely to continue growing at a faster rate” than the single-family market, Freddie Mac president David Brickman said at the convention.
But will Freddie Mac and Fannie Mae remain under government conservatorship?
“Certainly, I don’t think anyone expected the enterprises to be under conservatorship for over 10 years now,” said Sandra Thompson, deputy director of the Federal Housing Finance Agency.
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