Search Results: Freddie Mac

Back in early 2007, many industry observers suggested that pricing in the commercial real estate markets did not reflect traditional risk and that a correction was likely. Of course, they did not expect residential subprime lending to ignite one of the biggest meltdowns in the history of the global credit markets.In a little over a year, debt markets that were once a punchbowl from which everyone could drink have halted their flow, resulting in limited credit, failures of major financial institutions and significant government intervention. Right now, fundamentals in the multi-family and commercial sectors are not expected to reach distressed…

The federal bailout of Fannie Mae and Freddie Mac at the beginning of September may have roiled the markets, but it has a positive side, too: It presents an opportunity to help ease the severity of the housing crisis and strengthen investor confidence, according to a paper by Glev Nechayev, senior economist for Torto Wheaton Research. While multi-family activity accounts for just a small fraction of the government-sponsored entities’ business, these companies have a massive impact on the property sector. They represent more than $300 billion, or 35 percent of the total multi-family debt through their portfolios and mortgage pools,…

Bailout? The U.S. House of Representatives said, We don’t need no stinkin’ bailout. Just barely. Some Democrats and fewer Republicans voted aye; some Republicans and fewer Democrats voted nay. In the end, it was 228 against, 205 for. Predictably, the stock market tanked on word of the congressional cold shoulder. The Dow Jones Industrial Average ended down 777.68 points, or about 7 percent for the day. According to Bloomberg, about $1.1 trillion in market value–phantom wealth, that is–vanished. The Dow is now down 21.86 percent year-to-date. The tech-based Nasdaq took it on the chin as well, down 199 points, or…

Wall Street needs plumbers? That plumbing metaphor came up again during testimony today about the financial crisis. Fed Chairman Ben Bernanke called credit markets the “plumbing” of the U.S. economy this morning before Congress, warning of the dire consequences if consumers and businesses turn on an empty tap. By the end of the trading day, the market seems to have said, nice going Mr. Buffet, but things are still scary otherwise, especially with Congress dickering over the bailout. The Dow Jones Industrial Average lost 29 points, down 0.3 per cent.As CPNnoted last week, U.S. Treasury Secretary Henry Paulson talked of…

It was the last session in a long day, but the attendance was understandably strong at “The Outlook for Capital,” the closing session of “What Comes Next: Opportunities, Risks and Rewards,” the 2008 DLA Piper Global Real Estate Summit held Tuesday in Chicago. The panel discussion was dominated, of course, by debate and speculation about the federal government’s $700 billion bailout of the financial markets, also known as TARP, or the troubled assets relief program. Though he referred to “an excessive writedown of assets,” moderator Bruce Cohen, CEO of Chicago-based Wrightwood Capital, expressed a pervasive sentiment when he said that…

Monday saw the continuation of frantic efforts to prevent the collapse of the U.S. financial system as the Federal Reserve converted Goldman Sachs and Morgan Stanley to bank holding companies. The move transformed both companies from investment banks into depository banking institutions, brought them under the Fed’s regulatory control and marked an end to a Wall Street era. Unlike investment banks, depository banks may borrow at the Fed’s discount window. They also have access to funds held for depositors, which are insured by the Federal Depository Insurance Corp. (FDIC). In return, however, depository banks must submit to Fed regulations, including…

Commercial and multi-family mortgage delinquency rates as a group experienced minimal increases during the second quarter but continued to perform well, according to a report from the Mortgage Bankers Association. The multi-family sector, specifically, saw $1.489 billion in delinquencies in June, according to data from Standard & Poor’s Corp., barely up from $1.485 billion in March. Fannie Mae and Freddie Mac, which hold more than 80 percent of commercial and multi-family mortgage debt outstanding, saw minimal delinquencies, with just 0.11 percent of Fannie Mae’s loans 60 or more days delinquent and 0.03 percent of Freddie Mac’s at that level, according…