Investors will be able to elect a real estate mortgage investment option for Fannie’s multifamily MBS beginning Jan. 1.

The new rule provides clarity about how much and what kind of capital Fannie and Freddie will need in order to exit conservatorships. But the likelihood of that kind of capital raise seems remote.

Fannie and Freddie combined to issue $266 billion of single-family MBS in October, the third monthly production record set this year. Many top sellers shifted a little more of their GSE business to Freddie. (Includes two data charts.)

Could investors sink their money into the GSEs only to have Congress convert them into public utilities and closely supervise their g-fees?

Fannie issued $167.49 billion in short-term debt through Aug. 31, compared to $550.47 billion for all of 2019. Meanwhile, its long-term debt issuance expanded to $165.72 billion from $21.55 billion.

Both enterprises continue to structure deals.

Freddie prices its first sustainability K-deal, a $535 million transaction.

Over the past two weeks, Fannie Mae and Freddie Mac have collectively priced multifamily deals totaling nearly $4 billion.

Still, Rep. Maxine Waters (D-CA), chair of the House Financial Services Committee, urged the Federal Housing Finance Agency to kill the LLPA outright.

The first-of-its-kind MBS backed by single-family homes that are energy efficient has been endorsed by Cicero Shades of Green.