Investments

Rent just hit an all-time high… again

Rents just keep on climbing
With more and more renters feeling the affordability crunch, there seemed to be some light on the horizon recently with the steady rise in rents appearing to finally slow down over the last few months. Nevermind. As it turns out, rents are still going up and just hit an all-time high, again.
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Freddie Mac continues growing multifamily business in third quarter

Originations increase slightly in third quarter
The multifamily gravy train kept rolling for Freddie Mac in the third quarter, with the government-sponsored enterprise continuing to increase its originations and overall portfolio. Freddie Mac reported Wednesday that its third-quarter multifamily originations increased by 2% over last year to $47 billion. Additionally, Freddie’s multifamily guarantee portfolio increased 3% from the prior quarter to $226 billion.
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Kroll tells bond investors SFR market helps hedge portfolio in housing downturn

Rental market emerges as attractive counter-cyclical play
Earlier this week, the Structured Finance Investment Group held its annual Residential Mortgage Finance Symposium in New York City. Kroll Bond Rating Agency kindly emailed a recap to everyone who couldn’t make it and provided some color around prevailing views on the single-family rental space.
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Freddie Mac reports income of $2.6 billion in Q3

Expected to pay $2.6 billion to Treasury
Freddie Mac reported Wednesday it posted a comprehensive income of $2.6 billion in the third quarter of 2018. However, the company reported its single-family origination volumes decreased by 6%. FTN Financial Group analyst Jim Vogel highlights that the current system has become dependent on outside capital.
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Amrock ordered to pay $740 million to HouseCanary for trade secret theft

Texas judge hands down largest judgment in U.S. this year
A Texas judge last week ordered Amrock, the title insurance, settlement services and valuations provider formerly known as Title Source, to pay just shy of $740 million to HouseCanary after denying Amrock’s request to vacate a jury’s earlier decision in a trade secret theft battle that rocked the housing industry.
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Lennar to sell Rialto investment business to Stone Point Capital for $340 million

Stone Point to purchase Rialto Investment and Asset Management business
Homebuilder Lennar announced it has agreed to sell its Rialto Investment and Asset Management business to Stone Point Capital in a deal worth $340 million. The news of the sale shouldn't come as too much of a surprise. Rumors about Lennar offloading Rialto to Stone Point surfaced in early October.
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Freddie Mac continues LIHTC push, invests in Hudson Housing Capital

Fund will provide as much as $100 million for affordable housing
Freddie Mac, which recently re-entered the Low-Income Housing Tax Credit market for the first time in nearly 10 years, is continuing its push back into LIHTC investing. The GSE announced Monday that it closed its first LIHTC Fund with Hudson Housing Capital and its first investment in that fund. The fund will provide as much as $100 million in targeted affordable housing investments.
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Massachusetts man cops to 9-year multifamily mortgage fraud conspiracy

Used fake loan documentation to obtain loans that cost $4.3 million in losses
A Massachusetts man admitted in court last week that he took part in a nearly decade-long multifamily mortgage fraud conspiracy that defrauded financial institutions of millions of dollars. Court documents showed that Joseph Bates and other conspirators took part in a mortgage fraud scheme that stretched from 2006 through 2015, involved at least two dozen fraudulent loan transactions, and caused $4.3 million in losses to lenders.
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