The Multifamily Lenders Council, a trade group representing companies that originate and service Federal Housing Administration-insured multifamily mortgages, states President Obama isn't doing enough to assist affordable rental housing.
The group is speaking out after the administration announced it will reduce the monthly mortgage insurance premium for residential loans in the FHA program.
"MLC is pleased that today's announcement indicates the president and policy makers recognize that more needs to be done to restore the U.S. housing market," MLC said. "While MLC commends the White House for this renewed focus on housing affordability, we remain concerned that not enough attention has been paid to the affordable multifamily side."
MLC has called for a multifamily housing summit to be held this winter and chaired by the Department of Housing and Urban Development. It has publicly complained about changes made by HUD to "tighten" rental programs.
"The Federal Housing Administration has successful, safe financing programs that could generate additional rental housing — and rehabilitate existing rental housing — so that this key housing stock is not lost to the low- to moderate-income renter," said Michael Petrie, chair of MLC and president of P/R Mortgage and Investment Corp. in Indianapolis, in a release.
"But these programs have been held back recently by FHA's excessive caution, a caution not borne of data or loss experience. I do not think American families seeing ever-higher rents and shrinking choices share HUD's caution. Now is a time to act."
