Investments

New York developer admits to bilking investors in long-running luxury real estate Ponzi scheme

Pleads guilty to defrauding investors out of $58 million
A New York real estate developer admitted in court last week that he ran a luxury real estate Ponzi scheme that defrauded investors out of $58 million over several years. According to court documents, Michael D’Alessio took much of the money for his own benefit, using it to pay off debts and prior investors, and to fund significant gambling and other personal expenses.
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CoStar buying Cozy to turbocharge Apartments.com

Integration will allow rental payments through Apartments.com site
Apartments.com is already one of the top consumer websites for multifamily real estate, but the website’s parent company is not comfortable resting on its laurels. CoStar Group, which owns Apartments.com along with several other prominent online rental platforms, announced recently that it is buying Cozy Services for $68 million and plans to integrate the company’s online rental solutions into its websites.
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Real estate crowdfunding startup RealtyShares hits hard times, halts new investments

Company unable to secure new operating capital to continue growth
Everything was going swimmingly for RealtyShares just over a year ago. The real estate crowdfunding startup had just purchased one of its biggest rivals, Acquire Real Estate, and had plans to grow its investment in commercial and multifamily real estate. But now, RealtyShares has fallen on hard times and will be laying off much of its staff and stop accepting new investments on its platform.
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Multifamily lending on track to break records again in 2018

MBA projects commercial and multifamily originations will set new record
As the Mortgage Bankers Association reported recently, multifamily lending hit a record high last year…and things are looking even better this year. The MBA released a brief updated forecast this week, which states that multifamily lending is on track to set another record in 2018.
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Here’s how much Zillow is paying to get into the mortgage business

Company reveals cost of Mortgage Lenders of America acquisition
Zillow’s stock tanked on Wednesday after the online real estate giant released softer-than-expected guidance about the company’s expectations for the near-term, but that wasn’t the only big piece of news that Zillow released. Zillow also disclosed, for the first time, exactly how much it is paying to get into the mortgage business.
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UBS expecting DOJ lawsuit over pre-crisis mortgage bonds

Lawsuit could come as soon as this week
UBS, which has already paid out hundreds of millions of dollars over its pre-crisis mortgage securitization activities, is about to be facing another massive lawsuit for the same conduct. UBS revealed late Wednesday that it is expecting to be sued by the Department of Justice over its issuance, underwriting and sale of residential mortgage-backed securities from 2006 to 2007.
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Homeownership investment company Unison expands reach

New partnership makes 5% down program available to more homebuyers
Unison Home Ownership Investors aims to give homeowners and buyers access to cash for the opportunity to share in their home appreciation. In business for more than a decade, the company has been a pioneer in the homeownership investment category. Now, it’s growing into new markets through a new partnership with Goldwater Bank.
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How the mighty have fallen: Ditech booted from the New York Stock Exchange

Troubles persist for once-bankrupt nonbank
When we last checked in on Ditech Holding Corp., the nonbank formerly known as Walter Investment Management, things weren’t going too well. And it sounds like things haven’t gotten much better for the company over the last few months. Ditech notified investors this week that the company is being kicked off of the NYSE due to the company’s incredibly low share price and market cap.
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MBA lobbyist: Here's what a Democrat-led House means to us

One expert offers insight on what the finance industry is saying
On Tuesday night, Democrats reclaimed control of the House of Representatives, securing more than 200 seats across the country. As more Democrats head to the House, one expert predicts they will focus their efforts on protecting consumer interests and banking regulations.
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