Denise DiPasquale, associate director of the Joint Center for Housing Studies at Harvard University, addressed a recent Housing Roundtable forum on affordable housing. She noted the importance of multifamily housing to meet the needs of low- and moderate-income families and said the secondary market is a growing source of funds. Printed here are excerpts from her speech.
You might ask what kind of a secondary market we currently have on the multifamily side of the mortgage market? In 1990, $9 blllion in multifamily mort. gages were sold, either in the form of securities or as whole loans. That represents roughly 28% of multifamily mortgage loans that were originated. On the single-family side in 1990, there were $411 billion in single-family mortgage loans sold, which represented roughly 90% of all loans that were originated. There's clearly a very active secondary market on the singlefamily side and considerably less activity on the multiramfly side. For mortgage-backed securities, the federal credit agencies issued $7.3 billion in multifamily mortgage-backed securities in 1990, and $225 billion in single-family mortgage-backed securities in 1990.