Real Estate Organizations Submit Comments to FHFA on Credit Risk Transfers

10/19/2016

NAREIT joined the Association of Mortgage Investors and the Securities Industry and Financial Markets Association in writing to the Federal Housing Finance Agency (FHFA) on Oct. 13 to provide comments on credit risk transfer within the mortgage finance system.

The organizations recommended a market-based approach towards regulating credit risk transfer.

“We believe it is most important that FHFA not ‘pick winners and losers’ in regards to specific forms of credit risk transfer,” the organizations wrote in their letter to the FHFA. “This market is still new and has a long road ahead before it could be considered mature.”

(Contact: Victoria Rostow at vrostow@nareit.com)

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What's a REIT?

REITs, or real estate investment trusts, are companies that own or finance income-producing real estate across a range of property sectors. These real estate companies have to meet a number of requirements to qualify as REITs. Most REITs trade on major stock exchanges, and they offer a number of benefits to investors.

Why Invest in REITs

REITs historically have delivered competitive total returns, based on high, steady dividend income and long-term capital appreciation. Their comparatively low correlation with other assets also makes them an excellent portfolio diversifier that can help reduce overall portfolio risk and increase returns. These are the characteristics of real estate investment.

About Nareit

Nareit serves as the worldwide representative voice for REITs and real estate companies with an interest in U.S. real estate. Nareit’s members are REITs and other real estate companies throughout the world that own, operate, and finance income-producing real estate, as well as those firms and individuals who advise, study, and service those businesses.