In the Money

Mergers and acquisitions to surge in 2019

Too many lenders chasing too few borrowers
Mergers and acquisitions activity picked up significantly in 2018, a trend that is expected to continue into 2019 as the lending environment grows even more difficult. Today’s lending conditions are as challenging as they have been since the last recession, however, there are still strategies lenders can take to stay on top during this difficult season.
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Americans now have less equity to tap

Tappable equity falls for the first time since the market's recovery
According to the latest report from Black Knight, tappable equity on mortgaged properties is now $5.9 trillion – down from last quarter’s record-breaking $6 trillion. American homeowners with a mortgage lost about $2,300 in equity this quarter and now have $136,000 available to tap as a slowdown in home price appreciation dampens growth.
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Feds significantly expand investigation into all-cash real estate deals

Title insurance companies’ reporting threshold lowered to $300,000
Title insurance companies in 12 of the nation’s largest markets will now have to provide federal authorities with substantial details on all real estate deals of $300,000 or more if the buyer is paying all cash. The requirement comes at the hands of the Treasury Department’s Financial Crimes Enforcement Network, which is significantly expanding its investigation into whether foreign buyers are using shell companies to buy U.S. real estate in order to launder money.
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Black Knight paying $375 million to help buy Dun & Bradstreet

Joins CC Capital, Cannae Holdings, Thomas H. Lee Partners in buying D&B
Black Knight CEO Anthony Jabbour is about to have a new job, but he’s not leaving the growing financial technology giant. Rather, he’s tacking a new job title onto his existing responsibilities – running Dun & Bradstreet. The move is part of recently announced buyout of Dun & Bradstreet, which will see the company purchased for $5.38 billion in cash and taken private by a group of investors, including CC Capital, Cannae Holdings, and Thomas H. Lee Partners.
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Top multifamily operators band together, plan massive investment in real estate tech

Launch venture capital fund with $108 million in the bank
Five major multifamily real estate investment trusts, Aimco, Boardwalk, Essex Property Trust, MAA, and UDR, are partnering with private owners Starwood Capital Group, Cortland, and GID to invest more than $100 million in a venture capital fund, which will be used to invest in “disruptive real estate technology companies” in the multifamily industry.
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Fannie Mae plans $145 million investment in LIHTC funds

GSE continues to focus on affordable housing
After re-entering the Low Income Housing Tax Credit market just over a year ago, Fannie Mae is continuing its focus on affordable rental housing in underserved markets by committing $145 million in new investments in LIHTC funds. Here's a breakdown on where the money is going.
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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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