Freddie Mac Looking To Expand Role In Apartment Financing
SOURCE: Wall Street Journal
Freddie Mac is seeking a proposal that would allow it to create and sell bonds backed by multifamily mortgages to help expand its role in financing apartment buildings.
The proposal, if approved by Freddie Mac's management and regulators, would allow the government-sponsored provider of home funding to be more competitive with Wall Street.
"At some point, the market will come back," said Mike May, a senior vice president at Freddie. And Freddie's plan to develop its own ability to create such bonds could help the company compete more effectively with investment banks when the market turns. It would "keep our relevance in all market cycles," Mr. May said.
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Freddie Mac is seeking a proposal that would allow it to create and sell bonds backed by multifamily mortgages to help expand its role in financing apartment buildings.
The proposal, if approved by Freddie Mac's management and regulators, would allow the government-sponsored provider of home funding to be more competitive with Wall Street.
"At some point, the market will come back," said Mike May, a senior vice president at Freddie. And Freddie's plan to develop its own ability to create such bonds could help the company compete more effectively with investment banks when the market turns. It would "keep our relevance in all market cycles," Mr. May said.
WSJ Subscriber only report »
