Freddie Mac's Michael C. May

MCLEAN, VA-Throughout this downturn, the multifamily sector has had one advantage over its property-sector counterparts: the GSEs. While owners of office, retail, hotel and industrial assets have been hard-pressed for capital sources, many of those who need financing for apartment properties have been able to access the taps of Freddie Mac or its larger cousin, Fannie Mae. Both entities have also announced their commitment to providing liquidity to the multifamily industry.

As of the end of third-quarter 2009, the GSEs, along with Ginnie Mae, held the largest share–39%–of the $912 billion in outstanding multifamily mortgages–$197 billion in federally related mortgage pools and $162 billion in their own portfolios. When the debt pool is broadened to include commercial properties as well as apartments, the GSEs hold 10% of the total $3.43 trillion in outstanding debt, according to the Mortgage Bankers Association. Despite potential actions by Congress to impose greater control on GSEs, there is no doubt that the group is a crucial part of the multifamily industry.

Recently, Michael C. May, senior vice president of multifamily for Freddie Mac, spoke with GlobeSt.com about the GSEs and their importance to the industry. The McLean, VA-based executive also shared his thoughts on the multifamily industry and Freddie Mac in 2010.