Fannie Mae Gets Ready to Destroy The Rental Market

USA Today reports:

Last week, Fannie Mae announced it was really gearing up its commercial, multi-family mortgage backed securities business, offering new products.

"Fannie Mae Guaranteed Multifamily Structures, or Fannie Mae GeMSTM, an expanded multifamily mortgage-backed securities (MBS) execution that will include DUS Megas, DUS REMICs and syndicated DUS Megas." In other words, they're getting behind the apartment boom.

"Fannie Mae is a leading provider of capital and liquidity for affordable workforce rental housing, and our role is more important now than ever," said Kenneth J. Bacon, Executive Vice President, Multifamily Mortgage Business. "When many financial institutions pulled out of the multifamily financing market during the financial crisis, we stayed and increased our participation to help keep credit flowing."

Fannie is putting more than $20 billion behind multi-family financing, as builders ramp up production.

Fannie Mae: creating excess square footage with "other peoples' money".