Beyond Single-Family: Multifamily’s Role in GSE Reform Debates

The fate of Fannie Mae and Freddie Mac has been under debate for many years, and there are a multitude of proposals regarding what should be done, if anything, to bring them out of conservatorship. While much of the existing literature focuses on the single-family portion of their portfolios, this commentary highlights the distinct and often overlooked role of the GSEs’ multifamily business in informing reform efforts. Drawing on recent analyses, including proposals to restructure the enterprises as regulated utilities, it argues that any privatization or reorganization must account for the multifamily sector’s unique market dynamics, risk profile, and policy significance. The GSEs account for a large share of all multifamily mortgage debt, and reform discussions must prioritize preservation of mission-driven liquidity to support affordability initiatives and the ability to operate in a countercyclical capacity.