- Posted at 2:01, December 18, 2013
- By Quidnunc Staff
Five stories to get you started on Wednesday. . . .
- Fannie Mae and Freddie Mac, the government-dominated companies that buy mortgages from lenders, are going to charge higher fees that mortgage borrowers can expect to absorb when they take effect next year. The higher fees on loans where borrowers don’t have a 20% down payment or have high credit scores are being imposed by the Federal Housing Finance Agency, which regulates Fannie and Freddie. The move is designed to make private lenders’ loans competitive with those backed by the Fannie and Freddie-purchased loans. The Wall Street Journal has a Wednesday story on the expected backlash from consumer groups and the potential market shock, HERE, with a sub.
- A fascinating analysis appeared Tuesday afternoon on Bloomberg regarding the KKR merger, whose company-supplied advantages QuidnuncRE shared early yesterday morning. The parent is buying an already wholly-owned company, with real estate holdings, in a stock swap merger that will remove the second company from public trading. The Bloomberg article sets it forward plainly: “A KKR thing is being merged into another KKR thing, with KKR on all sides, which naturally raises the question: Who is being hosed?” The article can be found HERE.
- A high-profile developer has made a heartland investment. The Cedar Valley Business Monthly online site reports that New York’s Extell Development Co. has purchased the 846,000+ square foot Crossroads Center mall in Waterloo, Iowa, which includes JCPenney and Old Navy stores. The article, HERE, reports that the property had been in receivership for more than a year, and had been appraised in April at $10.3 million, down from $54 million in 2006, according to a New York analyst. Extell hasn’t included an announcement on its site yet, but you can see the company’s commercial properties HERE.
- Big plans for the Park Ave. corner on 125th St., which has been a laggard, in tomorrow’s New York Times, HERE.
- The Times also has posted this week’s “30 Minute Interview,” HERE. The subject is former Bloomberg administration Deputy Mayor Robert C. Lieber, who is executive managing director of the Island Capital Group, as well as the new chairman of the Urban Land Institute of New York.