The new cap structure will allow each firm to invest up to $100 billion in multifamily projects over the next five quarters. At least 37.5% of that investment must be for affordable housing.
The indictment of apartment mogul Robert Morgan and several of his associates may have accelerated the prepayment speeds of dozens of Fannie’s and Freddie’s multifamily MBS.
Late last month, Bloomberg reported that Kushner Cos., the real estate investment firm owned by the family of President Trump’s son-in-law and senior advisor Jared Kushner, was in negotiations with Fannie Mae and Freddie Mac for as much a $1.15 billion in loans. Some facts, though, make it difficult to know if the story is accurate.
Despite a slow fourth quarter, 2018 turned out to be the most profitable year since 2013 for Fannie Mae and Freddie Mac. And, although only a fraction of the size of the GSEs’ single-family business, multifamily remained a bright spot. [Includes one data chart.]
California-based Sabal Capital Partners, one of the earliest partners in Freddie Mac’s Small Balance Loan Program, broke a record this month when it sold the enterprise a portfolio of 39 small-balance loans worth $189 million. All the underlying properties are in East Harlem.
Fannie Mae stepped up its efforts to increase the supply of affordable housing, announcing earlier this week that it was increasing the loan limit for multifamily small mortgage loans from $3 million to $6 million.
Redwood Trust last week announced that it would invest as much as $78 million in a partnership seeking to acquire up to $1 billion in floating rate light-renovation whole loans from Freddie Mac. The California-based real estate investment trust says it has already funded the partnership to the tune of $20 million.
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