WASHINGTON, DC-In the never-ending war between the GSEs and life companies for good multifamily deals, the GSEs are winning–at least this week. The reason, not surprisingly, is the Federal Reserve Bank’s launch of QE3. Over the last two weeks, the GSEs have gotten very competitive over life companies, Walker & Dunlop’s Ted Hermes tells GlobeSt.com.

“Spreads over Treasuries have tightened considerably,” he says. “Standard deals are well below 4% — you can secure them at three-and-a-quarter, fully levered.” Life insurance companies are not as competitive when it comes to proceeds, he adds. “GSEs are winning by offering higher loan-to-values.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.