Montgomery County real estate briefs: Week of July 23

Jessica Mendez joins Berkshire Hathaway

Sue Walsh and Patrick Gallagher, co-sales leaders of Berkshire Hathaway HomeServices Fox Roach, Realtors Chestnut Hill office, welcome Jessica Mendez as a sales associate.

She has been licensed since 2003 and has a background in finance. She resides in Philadelphia and serves the Greater Philadelphia area.

Mendez can be contacted at 215-242-3394 or by emailing jessica.mendez@foxroach.com.

Re/Max Realtor earns top recognition

Re/Max Services agent Richard McIlhenny was the recipient of Re/Max Pennsylvania and Delaware Region’s Top 25 Individual Sales Associates for May. He ranked No. 11.

McIlhenny was named among Real Estate Executive’s 100 Most Influential Real Estate Agents in Pennsylvania. In July 2016, McIlhenny received the Philly.com Reader’s Choice Award as Best Real Estate Agent in Philadelphia for the second consecutive year. He is the recipient of numerous other awards including a 2014 Best of Trulia Award Winner — top 1 percent based on sales and client reviews; a 2016, 2015, 2014, 2013, 2012, 2011 and 2010 Philadelphia Magazine 5 Star Agent Award winner; and a 2014, 2013, 2012 and 2011 Top 25 Producer, Re/Max-Services Pennsylvania and Delaware Region.

“Richard has successfully ranked in the Top 25 for many years, and his achievement is a true reflection on his knowledge of the industry and excellent customer service,” said Bob Acuff, president and co-founder of Re/Max Services in Blue Bell. “He is a real inspiration to all of our sales associates in the region.”

Realtors with Re/Max Services in Blue Bell are members of the Montgomery County Association of Realtors, the Pennsylvania Association of Realtors and the National Association of Realtors.

To contact Rich McIlhenny, call 215-275-6303 or 215-641-2500 or email Rmac88@aol.com.

Berkshire Hathaway associates receive sales performance awards

Berkshire Hathaway HomeServices Fox Roach, Realtors recently honored sales associates for their sales performance for 2016, placing them in the top 20 percent of agents in the national BHHS network, with a Sales Performance Award.

Sales associates honored include Melissa Embrey, Sue Kinslow, Lorraine McKee, Deborah Mignogna and Bridget O’Donnell, of the Blue Bell office; Carolyn Cotton, Anna Cooke Woodward and David Morasco, of the Chestnut Hill office; Bruce Lyster, Bob Minnis and Leslie Myer, of the Collegeville office; and Mary Ann Bowler, Jill Stumpf and Oriel Zach, of the Jenkintown Home Marketing Center.

Local Realtors attend Washington meetings

On behalf of current and future home and property owners throughout the country, more than 9,600 Realtors traveled to Washington, D.C., May 15-20 to advance key real estate issues during the 2017 Realtor Legislative Meetings Trade Expo.

Konnie Krahn-Prosence, chair of the Glenwood Springs Association of Realtors (GSAR) and broker associate with Vicki Lee Green Realtors; Shannon Kyle, GSAR chair-elect and managing broker with CherylCo. Real Estate; and Cheryl Burns, GSAR CEO joined fellow Realtors and staff executives from Colorado and across the nation to attend meetings and informational sessions, as well as meet with regulatory agency staff and lawmakers on Capitol Hill to discuss and advocate real estate issues affecting their businesses, communities and clients.

Attending Realtors, members of the National Association of Realtors, focused on several significant issues affecting the industry during the legislative-focused meetings, including flood insurance, tax reform and sustainable homeownership.

“Realtors are critical advocates for the real estate industry and for their clients, and this meeting is the perfect opportunity to educate ourselves on the issues facing real estate markets, as well as the legislative and regulatory issues on the horizon that could affect Realtors, home buyers and sellers, and property owners,” said Krahn-Prosence.

While in Washington, Krahn-Prosence, Kyle and Burns met with Sens. Cory Gardner and Michael Bennet, and Rep. Scott Tipton on Capitol Hill to discuss and influence public policy decisions that directly affect consumers’ ability to own, buy, rent and sell residential and commercial real estate.

“As the leading advocates for real estate, it is important for Realtors to meet face to face with our nation’s representatives to make sure homeownership and commercial real estate remains top of mind, since these help to shape our communities and play crucial roles in the economic health of America,” said Krahn-Prosence.

When speaking with Sens. Gardner and Bennet, and Rep. Tipton, one of the main issues discussed was the urgent need to pass a multiyear reauthorization of the National Flood Insurance Program before it expires on Sept. 30. Additionally, Realtors urged the protection of sustainable homeownership by advocating for responsible reform of the secondary mortgage market, prohibiting the use of guarantee fees for any purposes other than credit-risk management, improving consumer protections for energy-efficiency improvement loans and tax reform.

“With tax reform currently being discussed by the administration and legislators, it is important for regulators to hear from Realtors that while tax reform is necessary, it cannot come at the expense of real estate tax provisions, such as the mortgage interest deduction, which are essential to the housing market and a key driver of the economy,” said Krahn-Prosence.

During the meetings, attendees also heard from industry experts and leaders, including Secretary of Housing and Urban Development Dr. Ben Carson, who spoke about the challenges facing potential homebuyers, including low home inventories and tight mortgage credit.

During the meeting, Carson confirmed that HUD is in “lock-step” with Realtors about an NAR-backed rule that would make it easier for consumers to buy a condominium with Federal Housing Administration backed financing, which has been pending since September 2016. Carson agreed that this rule would “make a big difference to a lot of Americans.”

In addition, attendees heard from Fox News’ Chris Wallace and CNBC’s Ron Insana, who shared their insights on the administration’s agenda and other legislative and regulatory happenings in Washington; Mark Calabria, chief economist to Vice President Mike Pence, who said reversing weak productivity and the low labor force participation rate are necessary to boosting the economy; John Worth, senior vice president for Research and Investor Outreach, National Association of Real Estate Investment Trusts, who shared his perspectives on commercial market activity; Roy Wright, deputy associate administrator for Insurance and Mitigation at the Federal Emergency Management Administration, who said that challenges remain in ensuring access to affordable flood insurance and a multi-year reauthorization of the NFIP is critical; and NAR Chief Economist Lawrence Yun, who shared residential and commercial real estate market updates and forecasts for the remainder of 2017.

During the week, Realtors also participated in a series of on-site visits with regulatory agency staff at the Federal Aviation Administration, Federal Emergency Management Agency, U.S. Department of Treasury and the U.S. Department of Veterans Affairs.

In addition to the informational legislative sessions and meetings with legislators, attendees had the opportunity to explore the latest industry innovations and receive up-to-date information on the newest products and services from more than 100 industry-leading companies that participated during the trade expo.

Single Security Praised by Urban Institute – Mortgage News Daily

The single
agency security
toward which the GSEs, Fannie Mae and Freddie Mac and their
regulator, the Federal Housing Finance Agency (FHFA), have been working for
several years, is not yet operative, but it just got a round of applause.  Linda Goodman, Codirector of the Urban
Institute’s (UI’s) Housing Finance Policy Center, and associates Bing Bai and
Jim Parrot, writing in UI’s Housing Wire blog say the new security will save
taxpayers millions of dollars while making the market more responsive to
borrowers and lenders.

The GSE’s have each issued their own
mortgage-backed security for more than four decades but the securities issued
by Freddie Mac have historically traded at a lower price than those issued by
Fannie Mae. A subsidy was often required to equalize pricing so originators
would put their loans in Freddie’s security pools and assure that company retained
an adequate market share. The subsidy cost taxpayers as much as $1 billion a
year. FHFA proposed the single security to overcome the pricing disparity.

Apparently it worked, even without
being operational
.  The authors say, once
the security effort began, the disparity all but disappeared. The 0.30 discount
at which three of Freddie’s coupons traded relative to Fannie’s in 2012 and
2013 narrowed to around 0.15 by 2014-2015 and had nearly disappeared by early
this year.

It seems operational factors and anticipation
may have done as much to eliminate the disparity as actually issuing the security.
Freddie Mac usually had prepayment speeds that were faster than Fannie Mae’s,
reflecting a different issuer mix and differences in their streamlined
modification programs. But FHFA’s insistence on aligning the operational
policies of the GSEs put prepayment speeds on the same track. The price
convergence also reflects that the market anticipated that the single security,
announced several years ago, would become a reality.

So why would FHFA and the GSEs
bother moving to a single security if the problem has disappeared? Goodman, et
al say the convergence is not sustainable in its absence. Part of the disparity
is due to the lower liquidity of Freddie Mac which still exists, so if that is
not addressed and the perception that the single security will become reality
disappears, the pricing disparity will almost certainly return.

The merging of the two price points
was necessary before the single security could work smoothly. The GSEs will
continue to issue their individual securities but both can also issue into
Fannie Mae Mega Pools, Freddie Mac Giant pools and real estate mortgage
investment conduits (REMICs) for each. For this the securities need to be
fungible, something the market recognizes and has begun pricing into their
investments.

Freddie Mac is already using the
Common Securitization Platform
(CSP) which is a joint venture of the GSEs and
from which the new security will be issued. Fannie Mae is expected to convert
to it in the second quarter of 2019 at which point the single security will go
live.

There are remaining considerations
to be addressed such as conversion of existing Freddie Mac securities to the
new issue and how that switch will be actuated and treated for tax purposes.  A host of questions also remain regarding regulatory
handling of limitations on concentrations on one or the other security, given
their fungibility.  None of these
concerns, the authors say, are sufficiently large to hold up the new security.

They conclude, “The bottom line,
though, is that progress toward a major development in the secondary mortgage
market is under way. This will be a significant achievement, making the market
more responsive to borrower and lender needs
, boosting competition, and
increasing the availability of mortgage credit.”

Co-author Parrott, a non-resident
scholar at UI, has also completed an analysis of the CSP. We will summarize it
in a subsequent article.

Freddie Mac enters rental market to increase affordability

Freddie Mac announced it is gearing up to enter the rental market, however unlike Fannie Mae’s approach, Freddie will focus on affordable housing.

Earlier this year, Fannie Mae upped its game in the multifamily sector with its agreement to backstop up to $1 billion in debt for Invitation Homes, the largest owner of single-family rental homes in the U.S.

Freddie Mac explained its goal is to provide tens of millions of dollars in financing to midsized landlords or even nonprofits, according to an article by Matthew Goldstein for The New York Times. The GSE could provide up to $1 billion in financing or loan guarantees to smaller firms with affordable housing rentals.

From the article:

“It is, first and foremost, affordable,” said the official, David D. Leopold, a Freddie Mac vice president for targeted affordable sales and investments. “The size of the sponsor is less important than affordability.”

Freddie Mac is still hashing out many of the details of the plan, but Mr. Leopold said the company hoped to announce the first deal within 90 days.

The Federal Housing Finance Agency approved of the plan on a trial basis, the article stated. Back in 2012, the agency fought against Freddie Mac’s plan to provide financing to buyers of foreclosed homes, saying it could encourage home flipping.

The article explains that while Freddie Mac’s plan is a response to the criticism to Fannie Mae’s approach, there is also another reason for its strategy.

From the article:

The strategy also stems from a growing consensus among housing policy makers and landlords that both Freddie Mac and Fannie Mae should play roles in providing financing to single-family home operators. The market has grown since the collapse of housing prices a decade ago touched off the worst financial crisis since the Great Depression and led to more than six million completed foreclosures.

PACs helping Senate candidates

The three main rivals for a U.S. Senate seat from Indiana are collectingcampaign funds from some of the same sources.

At least a dozen political action committees each contributed money to the campaigns of Sen. Joe Donnelly, D-Ind., and Reps. Luke Messer, R-6th, and Todd Rokita, R-4th,during the second quarter of this year.

Neither Messer nor Rokita has formally announced his candidacy. But they haveassembled statewide campaign finance organizations and aresnipingat each other as if the May 2018 Republican primary election were just around the corner.

Rokita announced last week that he had “massively outraised potential Senate primary opponent Luke Messer by nearly $500,000” during the second quarterand that Messer “was largely reliant on money from political action committees in Washington.”

Messer did not publicly respond to Rokita on that butsaid in an email to supporters that Rokita “has spread lies and half-truths about my family”– prompting Rokita to send an email saying hehad done nothing of the kind. Thedispute stems fromAssociated Press reports in May on Messer’s wife’s earnings for legal consulting she has donefor the city of Fishers.

Rokita raised $1.04 million in the second quarter, with $246,000 coming from PACs and the rest from individual donors. Messer raised more than $578,000 during that period, with roughly $348,000 of it from PACs.

By comparison, Donnelly raised $1.34 million during the quarter, with more than $559,000 from PACs.

The campaign finance reports filed with the Federal Election Commission show allthree lawmakers received contributions from PACs representing medical companies Roche, Batesville-based Hill-Rom Holdingsand Warsaw-based Zimmer Biomet, and defense contractors Lockheed Martin and Raytheon Corp., which has a plant in Fort Wayne.

Other common contributors included PACs for Delta Air Lines, State Farm Insurance, Navient, the American Soybean Association, the National Apartment Association, the Advanced Medical Technology Association and the National Association of Realtors.

Someof those PACS have spread money far and wide.The Realtors group contributednearly $4 millionto hundreds of federal candidates of both parties during the 2015-16 election cycle, the largest amount spent by any PAC, according to the non-partisan Center for Responsive Politics. Lockheed Martin was the eighth-largest contributor to candidates, at $2.5 million.

Zimmer Biomet, on the other hand, gave$75,000 in 2015-16 to 33 federal candidates, including 10 from Indiana.

A PAC may contribute as much as $5,000 per election to a federal candidate, according to campaign finance law.

Individual donors from the Fort Wayne areaare evenly divided betweenMesser and Rokita. Nine people from the region gave a combined$16,400 to Rokita in the second quarter, and nine people donated a combined $15,000 to Messer. An individual may give as much as $2,700 per election to a federal candidate.

Messer’s donors included Fort Wayne auto dealer Thomas Kelley, Fort Wayne banker James Marcuccilli, state Senate President Pro Tem David Long, R-Fort Wayne, and Warsaw duck producer Terry Tucker.

Rokita’s contributors included Fort Wayne musical equipment seller Charles Surack, restaurant owner Peter Eshelman of Columbia City, Auburn entrepreneurDaryle Doden and Columbia City resident Byron Lamm,co-founder of the Indiana Policy Review Foundation.

Rokita last week named Lamm, Doden, Eshelman and Warsaw medical device producer Nick Deeter to his 60-member campaign finance team. In March, Messer announced the formation of a 43-member campaign finance team that includesFort Wayne real estate developer Bill Bean and former state senator Tom Wyss of Fort Wayne.

For the election cycle to date, Rokita, a resident of Brownsburg, has raised $1.37million and has $2.35million in cash. Messer, of Greensburg, has raised $1.5million and has nearly $2.03 million in cash. Their cash includes money left over from previous House campaigns.

Donnelly, a former House member from Granger who was elected to the Senate in 2012, has raised $5.4 million and has almost $3.7 million in cash. During the second quarter, he raised roughly $8,700 from 14 residents of the Fort Wayne area. They included Cindy Henry, wife of Fort Wayne Mayor Tom Henry; the mayor’s brother, venture capitalistJerome Henry of Fort Wayne; attorney Timothy Pape of Fort Wayne; and attorney John Whiteleather of Columbia City.

Three Republicans have announced they will run for Donnelly’s seat– Hamilton County businessman Terry Henderson, New Albany college administrator Andrew Takami and Kokomo attorney Mark Hurt.Henderson has reported raising nearly $267,000, including a $250,000 loan to himself, and he has almost $263,000 in cash; Takami has raised more than $114,000 and has $72,000 in cash; and Hurt has raised $75,000, including an $18,000 loan from himself, and has less than $11,000 in cash.

Freshman Republican U.S. Rep. Jim Banks of Columbia City has raised more than $291,000 and has nearly $205,000 in cash on hand to defend his House seat in northeast Indiana’s 3rd Congressional District.

Fort Wayne marketing consultant Courtney Tritch, who seeksthe Democratic nomination in the 3rd District, has raised more than $12,000 and has almost$11,000 in cash since launching her campaign in June. David Roach and Tommy Schrader, both of Fort Wayne, have announced they will seek the 3rd District Democratic nomination but have not filed campaign finance reports.Candidates must submit such reports if they raise or spend at least $5,000.

bfrancisco@jg.net

Amid US real estate buying binge by foreign investors, Florida remains first choice

Foreign investment in U.S. residential real estate recently skyrocketed to a new high with nearly half of all foreign sales happening in Florida, California and Texas.

Related News/Archive

  • New real estate website advances calculation of true cost of Florida home

    6 Months Ago

  • Lay of the land: radical transformations underway in Florida real estate

    4 Months Ago

  • Pasco real estate transactions

    2 Months Ago

This year’s National Association of Realtors survey of international investing in U.S. real estate once again revealed that foreign buying is focused first and foremost on Florida, where 22 percent of such activities took place. The Sunshine State was followed by California and Texas (each at 12 percent), and then by New Jersey and Arizona (four percent apiece).

Florida was the most popular state for Canadian buyers, fueled by a sharp increase in sales dollar volume. Chinese buyers mostly chose California, while Texas was the preferred state for Mexican buyers.

Overall, 284,455 U.S. properties were bought by foreign buyers, up 32 percent from 2016. Purchases accounted for 10 percent of the dollar volume of existing-home sales, up from 8 percent last year.

NAR’s study found that between April 2016 and March 2017, foreign buyers and recent immigrants purchased $153 billion of residential property. That’s a 49 percent jump from $103 billion in 2016 and surpasses the $103.9 billion in purchases in 2015 as the new survey high.

“The political and economic uncertainty both here and abroad did not deter foreigners from exponentially ramping up their purchases of U.S. property over the past year,” NAR chief economist Lawrence Yun stated.

“While the strengthening of the U.S. dollar in relation to other currencies and steadfast home-price growth made buying a home more expensive in many areas, foreigners increasingly acted on their beliefs that the U.S. is a safe and secure place to live, work and invest.”

Yun attributed the rise in Canadian purchasing property in U.S. markets that remain more affordable than in their own country.

“Inventory shortages continue to drive up U.S. home values, but prices in five countries, including Canada, experienced even quicker appreciation,” said Yun.

Foreign buyers typically paid $302,290, which was a 9.0 percent increase from the median sales price in the 2016 survey ($277,380) and above the sales price of all existing homes sold during the same period ($235,792).

About 10 percent of foreign buyers paid over $1 million, and 44 percent of transactions were all-cash purchases, down from 50 percent in 2016.

Freddie Mac follows Fannie Mae to rental market, with affordability as goal

<!– –>



A housing development in Newtown Square, Pa. The government-controlled mortgage finance giant Freddie Mac is moving forward with a plan to provide tens of millions of dollars in financing to smaller firms that buy single-family homes and operate them as affordable-housing rentals.

When the government-controlled mortgage finance giant Fannie Mae agreed this year to guarantee a $1 billion financing deal for one of the biggest private-equity-backed landlords in the United States, the move prompted an outcry.

Housing advocates and legislators questioned why the landlord, Invitation Homes, which is controlled by the Blackstone Group, needed such low-cost financing, especially on the eve of an initial public offering through which Invitation Homes raised $1.7 billion in net proceeds.

Now, Freddie Mac, a rival government-controlled mortgage finance company, is gearing up for its own financing deal. But it is targeting a much different slice of the single-family home-rental market.

More from New York Times:
Something strange in Usain Bolt’s stride
Citing recusal, Trump says he wouldn’t have hired Sessions
Manafort was in debt to pro-Russia interests, Cyprus records show

Freddie Mac wants to provide tens of millions of dollars in financing to midsize landlords, not to giants like Invitation Homes, which operates nearly 50,000 rental homes in 13 markets.

In all, Freddie Mac could provide up to $1 billion in financing or loan guarantees to smaller firms that buy single-family homes and operate them as what it considers affordable-housing rentals, a company official said in an interview. Some nonprofit housing groups might also be eligible for financing.

“It is, first and foremost, affordable,” said the official, David D. Leopold, a Freddie Mac vice president for targeted affordable sales and investments. “The size of the sponsor is less important than affordability.”

Freddie Mac is still hashing out many of the details of the plan, but Mr. Leopold said the company hoped to announce the first deal within 90 days.

The Federal Housing Finance Agency, which regulates Freddie Mac and Fannie Mae, has approved the financing effort on a trial basis. The agency’s view of the single-family rental market has changed since 2012, when it balked at a Freddie Mac plan to provide financing to some buyers of foreclosed homes because of concerns that low-cost loans would hurt banks and might also encourage home-flipping.

Still, any specific Freddie Mac transaction would need the agency’s approval, just as Fannie Mae’s deal with Invitation Homes did.

The approach being taken by Freddie Mac is in part a response to criticism of Fannie Mae’s deal to provide a guarantee to investors in the 10-year, $1 billion loan that Wells Fargo provided to Invitation Homes and will securitize. The loan is backed by about 7,000 rental homes.

But the strategy also stems from a growing consensus among housing policy makers and landlords that both Freddie Mac and Fannie Mae should play roles in providing financing to single-family home operators. The market has grown since the collapse of housing prices a decade ago touched off the worst financial crisis since the Great Depression and led to more than six million completed foreclosures.

There are now about 17 million homes being rented, up from 11 million in 2007. About 300,000 of those rentals are operated by Invitation Homes and other big Wall Street-backed firms that sprouted up after the crisis like American Homes 4 Rent, Colony Starwood Homes and Pretium Partners.

The vast majority of rentals are still managed by mom-and-pop operators who own a small number of homes. And Fannie Mae and Freddie Mac have long provided financing to small investors. But financing has been hard to come by for nonprofit housing groups and midsize investor landlords who have had to rely mainly on private-equity-backed firms for financing.

In the wake of the financial crisis, most banks have tended to avoid lending to smaller landlords out of concern that such firms have scant operating histories and that the homes posted as collateral are not sufficient to secure the loans. But the hope is that with loan guarantees from the government-controlled mortgage finance companies, more traditional lenders may be willing to venture into that part of the market.

“There is no doubt they want to be in this space, and I think they should be in this space,” said Julia Gordon, the executive director of the National Community Stabilization Trust, which oversees a program that helps housing organizations across the country get the first chance at buying foreclosed homes from banks.

“Freddie seems to want to distinguish itself from Fannie,” she added.

The push into single-rental housing by Freddie Mac and Fannie Mae comes amid a debate over the future of the two companies, which the federal government bailed out in 2008 and placed in a government conservatorship at the height of the crisis. The main mission of both is to maintain the viability of the 30-year mortgage by ensuring such loans against default and then packaging them into mortgage-backed securities.

The Federal Housing Finance Agency is also prodding the two mortgage finance giants to do more to actively support the rental market for single-family homes.

“F.H.F.A. has authorized both Fannie Mae and Freddie Mac to explore single-family rental transactions on a very limited basis,” Corinne Russell, an agency spokeswoman, said. “These transactions will help the enterprises test, and learn about, the market.”

The agency held an invitation-only conference in Washington last month to discuss challenges related to the single-family rental industry. Representatives from Fannie Mae and Freddie Mac, as well as from for-profit and nonprofit landlords, participated.

Laurie Goodman, a director of housing-finance policy for the Urban Institute, who spoke at the conference, said that “there is a huge hole in the middle market” that Fannie Mae and Freddie Mac could fill. Unlike others, she was less criticalof Fannie Mae’s decision to guarantee the loan to Invitation Homes, saying the deal was a “very valuable learning experience.”

Fannie Mae declined to comment. Claire Parker, an Invitation Homes spokeswoman, said the loan was consistent with Fannie Mae’s mission to promote rental housing.

“The reality is that housing needs are evolving, and single-family leasing can very often represent a better and more affordable option for families,” Ms. Parker said.

John O’Callaghan, the president of the Atlanta Neighborhood Development Partnership, which has rehabilitated homes in the Atlanta area, said he would prefer that Fannie Mae and Freddie Mac provide financing to organizations like his that work to create affordable rentals and, sometimes, to resell those homes to local families.

“Our No. 1 goal is to allow neighborhoods that have had homeownership stripped out of them to have it returned,” said Mr. O’Callaghan, who also participated in the housing finance agency conference.

Freddie Mac Announces Pricing of $285 Million Multifamily Small Balance Loan Securitization

MCLEAN, VA, Jul 21, 2017 (Marketwired via COMTEX) — MCLEAN, VA–(Marketwired – Jul 21, 2017) – Freddie Mac (otcqb:FMCC) announces the pricing of the SB35 offering, a multifamily mortgage-backed securitization backed by small balance loans underwritten by Freddie Mac and issued by a third-party trust. The company expects to guarantee approximately $285 million in Multifamily SB Certificates (SB35 Certificates), which are anticipated to settle on or about July 28, 2017. Freddie Mac Small Balance Loans generally range from $1 million to $6 million and are backed by properties with five or more units. This is the tenth SB Certificate transaction in 2017.

SB35 Pricing

Class   Principal/   Weighted Average Life (Years)   Spread (bps)   Coupon   Yield   Dollar Price Notional Amount (mm) A-5F   $7.126   4.13   S + 28   2.2500%   2.1016%   $100.4697 A-5H   $107.171   4.10   S + 47   2.4400%   2.2895%   $100.4659 A-7F   $16.111   5.60   S + 54   2.6000%   2.4861%   $100.4828 A-7H   $18.535   5.37   S + 70   2.7500%   2.6287%   $100.4898 A-10F   $116.087   7.32   S + 77   2.9300%   2.8429%   $100.4777 A-10H   $20.238   7.47   S + 96   3.1300%   3.0418%   $100.4948 X1   $316.965   5.82   Non-Offered               

Details

Sole lead manager and bookrunner: J.P. Morgan Securities LLC

Co-managers: Drexel Hamilton, LLC, FTN Financial Capital Markets, Stifel, Nicolaus Company, Incorporated, and Wells Fargo Securities, LLC

114 mortgages originated by CBRE Capital Markets, Inc., Greystone Servicing Corporation, Inc., and Sabal TL1, LLC, through its affiliate Sabal Capital II, LLC

SB35 Certificates Offering Circular

Small Balance Securitization Investor Presentation

Freddie Mac is guaranteeing six senior principal and interest classes and an interest only class of securities issued by the FRESB 2017-SB35 Mortgage Trust and is also acting as mortgage loan seller and master servicer to the trust. In addition to the seven classes of securities guaranteed by Freddie Mac, the trust will issue certificates consisting of Class B and R Certificates, which will not be guaranteed by Freddie Mac and will be sold to private investors.

The Small Balance Loan (SBL) origination initiative was first announced in October 2014, and expands the company’s continuing effort to better serve less populated markets and provide additional liquidity to smaller apartment properties. Freddie Mac has a specialty network of Seller/Servicers and SBL lenders with extensive experience in this market who source loans across the country.

This announcement is not an offer to sell any securities of Freddie Mac or any other issuer. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission (SEC) on February 16, 2017; all other reports Freddie Mac filed with the SEC pursuant to Section 13(a) of the Securities Exchange Act of 1934 (Exchange Act) since December 31, 2016, excluding any information “furnished” to the SEC on Form 8-K; and all documents that Freddie Mac files with the SEC pursuant to Sections 13(a), 13(c) or 14 of the Exchange Act, excluding any information furnished to the SEC on Form 8-K.

Freddie Mac’s press releases sometimes contain forward-looking statements. A description of factors that could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements can be found in the company’s Annual Report on Form 10-K for the year ended December 31, 2016, and its reports on Form 10-Q and Form 8-K, filed with the SEC and available on the Investor Relations page of the company’s Web site at www.FreddieMac.com/investors and the SEC’s Web site at www.sec.gov.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.

MEDIA CONTACT: Christopher Spina 703-388-7031 Christopher_Spina@FreddieMac.com INVESTOR CONTACT: Robert Koontz 571-382-4082 Aaron Dunn 571-382-5818

� 2017 Nasdaq, Inc. All rights reserved.

Freddie Mac enters rental market to increase affordability | 2017-07 …

Freddie Mac announced it is gearing up to enter the rental market, however unlike Fannie Mae’s approach, Freddie will focus on affordable housing.

Earlier this year, Fannie Mae upped its game in the multifamily sector with its agreement to backstop up to $1 billion in debt for Invitation Homes, the largest owner of single-family rental homes in the U.S.

Freddie Mac explained its goal is to provide tens of millions of dollars in financing to midsized landlords or even nonprofits, according to an article by Matthew Goldstein for The New York Times. The GSE could provide up to $1 billion in financing or loan guarantees to smaller firms with affordable housing rentals.

From the article:

“It is, first and foremost, affordable,” said the official, David D. Leopold, a Freddie Mac vice president for targeted affordable sales and investments. “The size of the sponsor is less important than affordability.”

Freddie Mac is still hashing out many of the details of the plan, but Mr. Leopold said the company hoped to announce the first deal within 90 days.

The Federal Housing Finance Agency approved of the plan on a trial basis, the article stated. Back in 2012, the agency fought against Freddie Mac’s plan to provide financing to buyers of foreclosed homes, saying it could encourage home flipping.

The article explains that while Freddie Mac’s plan is a response to the criticism to Fannie Mae’s approach, there is also another reason for its strategy.

From the article:

The strategy also stems from a growing consensus among housing policy makers and landlords that both Freddie Mac and Fannie Mae should play roles in providing financing to single-family home operators. The market has grown since the collapse of housing prices a decade ago touched off the worst financial crisis since the Great Depression and led to more than six million completed foreclosures.

Realtors withdraw objection to key flood insurance legislation

Realtors withdraw objection to key flood insurance legislation
The National Association of Realtors said that there have been significant improvements in key flood legislation that will allow the industry group to endorse it.

Among the improvements to the 21st Century Flood Reform Act is the House Financial Services commitment to retain the current flood insurance provisions’ “grandfathering” policy, which protects homeowners from significant rate increases when a flood map changes.

The most recent version of the bill will also limit fee increases and rate hikes that would have affected policyholders under earlier versions, according to the NAR.

Celebrate excellence in insurance. Nominate a worthy colleague for the Insurance Business Awards.

“House Financial Services Committee Chairman Jeb Hensarling (R-Texas), as well as Subcommittee on Housing and Insurance Chairman Sean Duffy (R-Wis.), deserve high praise for working with realtors to improve this legislation,” NAR President William E. Brown said in a statement.

“The changes to the 21st Century Flood Reform Act will help give certainty to homeowners who have brought their property to code and have done their part to protect it against flood risk. It’s a fair and reasonable approach that recognizes the need for accessible, affordable flood insurance, while taking us one step closer towards reauthorization.”


Related stories:
Bipartisan group proposes flood premium cap
Senators introduce NFIP reauthorization bill