WASHINGTON, DC-In the never-ending war between theGSEs and life companies for goodmultifamily deals, the GSEs are winning--at leastthis week. The reason, not surprisingly, is the Federal ReserveBank’s launch of QE3. Over the last two weeks, the GSEs have gottenvery competitive over life companies, Walker & Dunlop’sTed Hermes tells GlobeSt.com.

“Spreads over Treasuries have tightened considerably," he says."Standard deals are well below 4% -- you can secure them atthree-and-a-quarter, fully levered.” Life insurance companies arenot as competitive when it comes to proceeds, he adds. “GSEs arewinning by offering higher loan-to-values.”

Life companies are still competitive in other respects, he adds.For example, they're still trumping the GSEs with theirpremiums for forward rate locks. That is an area,in fact, where life companies have traditionally exceled. Oneexample is a deal Walker & Dunlop closed this summer--a$67.5 million refinancing structured for theHuntington Gateway Apartments, a high-riseresidential community located in Alexandria, VA. New YorkLife Insurance Co. won the deal-- over significantinterest from the GSEs, Hermes says, providing a 10-year term and a30-year amortization for the borrower, Huntington ApartmentAssociates, L.P.