Enter your email address for weekly access to top multifamily blogs!

Multifamily Blogs

This is some blog description about this site

Green-Certified Multifamily Sees Fannie Mae Drop Rates

Green-Certified Multifamily Sees Fannie Mae Drop Rates
Fannie Mae proclaimed their commitment to a more eco-friendly and green multifamily industry by announcing in February that they will be offering special, discounted or lower interest rates on any of the loans they make to any certified energy-efficient multifamily properties. The idea of offering deep discounts to property owners who are willing to improve their properties’ energy performance doesn’t just make for a more sound investment in our future; this move is also designed to see the overall quality and affordability of these multifamily properties improve in the long run. Fannie has agreed to lower the interest rates on any loans they make that either refinances, acquires, or is made as a supplemental multifamily mortgage loan on any qualifying green property by 10 basis points. Fannie’s new program is designed to push multifamily builders and investors to seek more energy efficient alternatives for their new and existing projects. This push is seen as a much needed incentive for decision makers who might be on the fence about building or converting over to green energy and efficiencies. This comes at a time when gaining green certification means becoming eligible for a number of green funding opportunities and a variety of rebate programs designed to help balance the additional costs of executing any new energy conversions. Because of this cost offset – which can sometimes equal the total cost of the conversion - more commercial investors and owners are choosing to gain Energy Star, LEED, and/or one of the other certifications available for ene......
Continue reading
1138 Hits
0 Comments

Are Local Banks Cutting into Fannie Mae’s Multifamily Loan Business?

Are Local Banks Cutting into Fannie Mae’s Multifamily Loan Business?
While both Fannie Mae and Freddie Mac are still the big dogs in multifamily lending, their biggest competitors have begun doing what they must to win over new market share–and with everyone from the House of Representatives to the President of the United States looking to phase out Fannie and Freddie all together, it looks like the competition is heating up as the local banks have begun chomping at old Fannie and Freddie’s heels.  After the market crashed, accessing capital via traditional lenders and banks was nearly impossible and Fannie Mae and Freddie Mac were there to lend for multifamily. Unfortunately, in recent years, the amount of multifamily financing available has been stretched thin because of the increase in competition. How is the impact is being felt? In 2014, Fannie Mae’s overall multifamily lending business has totaled a mere $6 billion or less than half the $13.6 billion in multifamily loans they did during this same time last year. Aside from lowering interest rates, this drop-off in volume has had a surprising side effect in that there are fewer loans to turn into bonds. Which translates into potential bond investors being forced to compete for a limited supply of bonds, paying more, and reducing their overall yields by more than 20 basis points just in the last eight months. Is phasing out Fannie and Freddie the solution? As a result of the collapse of the mortgage market, many feel that replacing Fannie Mae and Freddie Mac is a necessity, but, according to an article recen......
Continue reading
1604 Hits
0 Comments

Fannie Mae has its Say: Multi-family Overview for 2014

Fannie Mae has its Say: Multi-family Overview for 2014
Healthy in 2014. That’s the report from Fannie Mae on what’s to be expected of the Multifamily Property Market in the coming year. It’s a trend we saw in 2013, even at times when it was least expected. In fact, the Federal National Mortgage Association reported continued rent growth and sustained occupancy levels through the end of the year, a time when both have a tendency to dip. Keeping with the trend, Fannie Mae says 2014 holds much of the same, with both tenants and property owners demonstrating a continued demand for the industry. The best news? Looking at the graph provided by the agency, vacancies from now until 2018 are predicted to see very little change, with the first multi-year sustained vacancy rate since 1995. What’s the Driver? Wondering about the source of this trend? Job growth, of course, takes the bulk of the credit. The following numbers have been forecast by Fannie Mae’s Economic & Strategic Research Group: 6.4 percent unemployment rate by the end of 2014 1.9 percent increase in nonfarm payroll in 2014 and up to 2.0 percent in 2015 An increase in household formations is expected to increase demand for rental units Some More than Others As Fannie Mae details—and from what we know to be true—not all areas of the country have seen or will continue to see this positive trend. In fact, particular areas of the country that ‘carrying’ others—bringing up the average for the whole. What’s interesting is comparing the metropolitan areas expected to see positive jo......
Continue reading
1387 Hits
0 Comments

Foreclosures Stimulate the Housing Market

By Ken Kmet, Condo Voice, Clearwater, FL The level of lender foreclosures has increased in recent months, and that's created an economic stimulus to the housing industry, in traditional and non-traditional methods in the pre-sale and pre-rental market. This stimulus may not be apparent to the general public, because most of these activities involve services that are not sale-related. Let me break down the basics and provide an overview for you. The majority of banks have sold or given their mortgages to either Fannie Mae (FM1) or Freddie Mac (FM2), the U.S. government. You may not know who owns your mortgage. To check to see if Fannie Mae owns your mortgage, click here. To check to see if Freddie Mac owns your mortgage, click here. Based on my observations, FM1 and FM2 have taken inventory of their properties and begun foreclosing on those that have the least amount of losses first. It doesn't matter if the property is worth $20,000 or a million. The degree of foreclosure loss determines the order by which they foreclose or resume and finish previously started foreclosure processes. Another factor is the age of the previous foreclosure process. Realtors are now being hired by FM1 and FM2 to list these properties for sale and rent. But before they can do this, a lot has to happen. FM1 and FM2 hire “scouts,” people who visit inventory properties to observe them from a distance, and to establish the “state” of the property for the lender. Is it abandoned, is it m......
Continue reading
979 Hits
0 Comments