commercial loan news

September 9, 2008

Apartment Loans in Question with Fannie, Freddie Future

SOURCE: Reuters

So the question now is whether or not the Fannie and Freddie take over is going to help or hinder the available capital sources for commercial real estate loans?

As investors and homeowners wait to find out how the federal government's takeover of mortgage providers Fannie Mae and Freddie Mac will aid the depressed housing market, buyers and sellers of apartment buildings are worried that proposed changes could hurt them.

Fannie and Freddie, the government-sponsored entities (GSEs) that are the major source of financing for buyers of apartment buildings, have taken on an even greater role after the credit crisis closed the spigot on the flow of other financing.

Because of the availability of financing from Fannie and Freddie, buildings with apartments for rent have outperformed other property sectors by 20 percent from March to May, according to commercial real estate research firm Real Capital Analytics.

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