The multifamily industry is experiencing a wave of loan-repurchase requests coming from Fannie Mae and Freddie Mac. These requests can have a significant impact on M&A activity, as lenders monitor potential buyouts and potential deficiencies in loans that may be subject to repurchase.
Real estate transaction professionals say the loan-repurchase requests have been growing increasingly more common, to the point where it’s becoming nearly impossible to monitor potential buy-side candidates without keeping a close eye on the loan-repurchase market. Fannie Mae and Freddie Mac have often been quicker to demand a repurchase of a loan if it’s found to be deficient or noncompliant.
The industry implications of loan-repurchase requests intensifying are significant. Potential buyers of multifamily properties need to pay special attention to potential request liabilities and any potential deficiencies that could be flagged.
M&A activity in the multifamily industry:
– Growing wave of loan-repurchase requests from Fannie Mae and Freddie Mac
– Requests have been increasingly commonplace making it difficult to monitor buy-side candidates
– Fannie Mae and Freddie Mac often demand a repurchase of a loan if it is deficient or non-compliant
– Multi-family property buyers need to examine potential request liabilities and flag potential deficiencies
– Requests need to be taken into account when assessing the potential of a transaction
You can read this full article at: https://www.housingwire.com/articles/loan-repurchase-risk-threatens-future-ma-deals/(subscription required)
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