The Lede
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GSEs Establish Tougher Standards for Green Apartment Loans in 2019
National Real Estate Investor, Nov. 20, 2018--Bendix AndersonMultifamily borrowers will have to do a lot more in 2019 to get the lower interest rates offered by Fannie May and Freddie Mac's popular "green" lending programs.
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Commercial and Multifamily Origination Volume Takes Drop
National Mortgage Professional, Nov. 19, 2018--Phil HallOrigination volume for commercial and multifamily properties took a drop in the third quarter, according to new data from the Mortgage Bankers Association.
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Former Urban Big-Boxes, Class B Office Buildings Are Being Converted to Last Mile Industrial Space
National Real Estate Investor, Nov. 28, 2018--Patricia Kirk Investors are redeveloping empty retail big box stores and Class B office buildings in urban locations into "last mile" industrial facilities.
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Prudential Making a Big Bet on Lower-Income Housing
Wall Street Journal, Nov. 27, 2018--Peter Grant (subscription)A venture led by Prudential Financial Inc. is spending nearly $600 million for 4,000 housing units aimed at lower-income workers, the latest sign that investors see bigger gains in lower-rent apartments than in the upscale ones that have led the recovery.
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News and Trends
MBA, Trade Groups Press Congress on Flood Insurance Program Extension
More than two dozen industry trade groups joined the Mortgage Bankers Association in a letter to House and Senate leaders, urging them to extend the National Flood Insurance Program beyond its latest expiration date (Nov. 30).
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MBA Letters Address GSE Capital Requirements; Single Security; CRA Reforms
The Mortgage Bankers, in a series of letters to federal agencies, offered recommendations to the Federal Housing Finance Agency on its proposed capital requirements for the government-sponsored enterprises (Fannie Mae and Freddie Mac); the FHFA proposed rule on the GSEs' Uniform Mortgage-Backed Security; and the Office of the Comptroller of the Currency's proposed rule to revamp the Community Reinvestment Act.
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CMBS Supply-Demand Fundamentals Stable
Commercial property market supply and demand fundamentals remained relatively stable in the second quarter, said Moody's Investors Service, New York.
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Demand For Commercial Retail Space Continues Decline
Despite significant U.S. economic expansion, the retail sector continues to wane with store closings and space shrinkage dominating the market.
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CRE Transaction Volume Up 14% through 3Q
Commercial real estate transaction volumes through the first three quarters increased 14.2 percent over last year to $341.2 billion, reported JLL, Chicago.
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Demand for Industrial Real Estate Remains Strong; Debt Pricing on the Rise
While demand for distribution and warehouse space remains strong across most U.S. markets, investors should expect to pay more for debt financing heading into 2019, said Avison Young, Toronto.
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Commercial/Multifamily Briefs
Macerich, Santa Monica, Calif., launched BrandBox as a way for digital-native brands to open and operate brick-and-mortar stores and scale physical retail as a complement to e-commerce.
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MBA Announces Record 149 Path to Diversity Scholarship Winners
The Mortgage Bankers Association announced a record 149 individual employees from MBA member companies were awarded a Path to Diversity scholarship during the 2018 fiscal year.
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MBA Offers Recommendations on HVCRE Exposures
The Mortgage Bankers Association weighed in yesterday on proposed changes to the High Volatility Commercial Real Estate risk-based capital rule, offering recommendations on implementation issues and expressing concerns about certain rule interpretations.
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