Finding Shelter

The market decline of the low-income housing tax credit has forced affordable housing developers to get incremental in their search for gap financing. But can any solution repeat the success of the 23-year-old LIHTC program?

Faced with plummeting prices and an exodus of investors, the market for low-income housing tax credits (LIHTCs) is at a historic nadir.

Small-Loan Market Heats Up

Fannie Mae saw some stiff competition from the banking sector last year for loans of $5 million or less, and that dynamic should only grow this year.
GSEs Capture More Than 60 Percent of Market in 2011

Though the competitive landscape grew more heated last year, the overall market for permanent multifamily debt also expanded, allowing Fannie and Freddie to capture more than a 60 percent market share.
Construction Loans Getting Pricier?

The demand for construction debt is expected to be high in 2012 as developers urgently try to make up for lost time. But the supply of ready and willing banks will be a limiting factor.

Fannie Mae's Multifamily MBS Issuance Jumped 45 Percent in 2011 ; Fannie Mae GeMS(TM) Issuance Reached $6 billion Milestone in the Program's First Year
WASHINGTON, Jan. 24, 2012 /PRNewswire/ -- Fannie Mae (OTC Bulletin Board: FNMA) today announced that the company issued $7.2 billion multifamily MBS(1) in the fourth quarter of 2011, the highest quarterly issuance since Fannie Mae began reinvigorating its multifamily MBS business in 2009.
Good, or at least non-bad, signs on the housing market
Jan. 24--David H. Stevens, president of the Mortgage Bankers Association, recently paraphrased Thomas Jefferson in assessing the housing market: It's "swimming with the current rather than standing like a rock," and what is needed now is "rock-like certainty."
Small-Loan Market Heats Up
Fannie Mae saw some stiff competition from the banking sector last year for loans of $5 million or less, and that dynamic should only grow this year.

Prudential Jumps Back Into CMBS
Prudential Mortgage Capital shut down its conduit operations in 2008, but the firm is now ready to jump back in through a joint venture with Perella Weinberg Partners.
Agency Lenders Increasingly Cultivate Life Company Executions
Many Fannie, Freddie, and FHA lenders are now building up thier life company correspondent relationships both to offer customers more choices, and to protect themselves against the uncertainty surrounding the GSEs.
Multifamily Lenders Increasingly Hitch Wagons to Investment Sales
Over the past month, both Berkadia and Walker & Dunlop made moves to tie loan originations to investment sales platforms, following the lead of Wells Fargo and CWCapital.
Wells, CBRE, Berkadia were the Top Lenders of 2010
Wells Fargo was the most prolific multifamily lender in 2010 for the second year in a row, nearly doubling the volume of No. 2-ranked CBRE Capital Markets.

Home Financing Stays Tough
Home Financing Stays Tough
Rental Applicant Screeners Embracing Payment History Over Credit Scores
Rental applicant screening professionals stress a more hands-on and holistic approach to prospect approval.
Apartment Credit Screeners Improving Rental History Data Sets
“Holy Grail” of apartment prospect screening moves closer to fruition as screening firms and data providers broaden data sets on renter payment history.
Apartment Credit Screeners Considering Skip Alerts
Apartment Credit Screeners Considering Skip Alerts: Services that offer apartment owners a notification when residents apply elsewhere is being investigated by major applicant screening providers.

Fannie Mae's Multifamily MBS Issuance Jumped 45 Percent in 2011 ; Fannie Mae GeMS(TM) Issuance Reached $6 billion Milestone in the Program's First Year
WASHINGTON, Jan. 24, 2012 /PRNewswire/ -- Fannie Mae (OTC Bulletin Board: FNMA) today announced that the company issued $7.2 billion multifamily MBS(1) in the fourth quarter of 2011, the highest quarterly issuance since Fannie Mae began reinvigorating its multifamily MBS business in 2009.
Good, or at least non-bad, signs on the housing market
Jan. 24--David H. Stevens, president of the Mortgage Bankers Association, recently paraphrased Thomas Jefferson in assessing the housing market: It's "swimming with the current rather than standing like a rock," and what is needed now is "rock-like certainty."
Home Financing Stays Tough
Home Financing Stays Tough
New Jersey Earns a Spot as a Solid Multifamily Market
Renters and investors alike will find much to appreciate in the Garden State, which is enjoying accelerating job growth and other advantages as it emerges from the recession.

Alternative Capital Steps Up to Fill the Gaps
Bridge, equity, and mezzanine capital have grown more available this year, a trend which should only continue in 2012.
Eyeing Rising Demand for Mezz, RCG Opens Conduit Line
As permanent loan rates continue to rise, mezzanine financing providers see a rising need for their product this year. And while demand for Fannie Mae and Freddie Mac's mezz programs has been light, one large mezz provider has opened a conduit business line to drive more production.
Bridge Building: Debt for Transitional Assets is Coming Back
The bridge loan market is starting to heat up, as providers see more opportunity in lending to transitional assets and distress acquisitions.
Fannie Mae Re-Introduces Mezz Programs
Following on the heels of a similar announcement from Freddie Mac, Fannie Mae has re-engaged its DUS Plus and CI Mezz-Mod Rehab programs, offering borrowers up to 80 percent leverage.

Fannie Outpacing Freddie on Affordable Housing Preservation
Affordable housing borrowers looking for permanent loans are finding more success using Fannie Mae's MBS than Freddie Mac's CME.
CMBS Recovery Hits a Wall
The CMBS sector's recovery has temporarily run out of steam, as Standard & Poor's abrupt actions send the industry into disarray.
Prudential Jumps Back Into CMBS
Prudential Mortgage Capital shut down its conduit operations in 2008, but the firm is now ready to jump back in through a joint venture with Perella Weinberg Partners.
CMBS Properties Come Back Around
Steve Boyack, senior vice president of Denver-based The Laramar Group, happened to be driving near Philadelphia with company CEO Dave Woodward a year ago when they decided to check out a property they sold in 2005.
CMBS Sector Creeps Up on the GSEs
CMBS pricing has steadily dropped this year, so much so that some conduits are now quoting rates on high-end acquisition deals that are comparable to what Fannie Mae and Freddie Mac are offering.