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Government's Fannie Mae will back PE giant Blackstone's rental homes debt

By gsr following x   2017 Jan 26, 10:12am 1,609 views   4 comments   watch   nsfw   quote     share    


When the smart people start seriously discussing things like "which race is the most racist", these kind of news stay hidden. This is a textbook case of fascism and bailout.

From http://www.cnbc.com/2017/01/25/governments-fannie-mae-will-back-pe-giant-blackstones-rental-business-debt.html

Mortgage giant Fannie Mae is getting into the single-family rental business in a big way.

The government-backed agency said it is going into business with private equity giant and major housing player Blackstone by backing $1 billion in debt. Blackstone's Invitation Homes filed for an initial public offering this week, and the Fannie Mae relationship was disclosed afterward. Blackstone is looking to raise $1.6 billion by selling shares to the public.

Fannie Mae, currently under government conservatorship, will back $1 billion in debt collateralized by rental homes owned by Blackstone.
...

Meanwhile, blackstone prepares for IPO
http://www.housingwire.com/articles/39026-blackstones-invitation-homes-prepares-15-billion-ipo

#politics #investing #housing

1   Tenpoundbass   ignore (15)   2017 Jan 26, 10:19am   ↑ like (0)   ↓ dislike (1)   quote   flag        

That will never happen unless Trump wants his supporters joining the Idiots that were on parade last week.

The net result of that will be rental razzing and the Civil/Revolt War the establishment has been itching for.

I think a 5% on property vlaue Federal homeowner tax on single family units is order. The only way to avoid it is to homestead. No Federal home owner tax on owner occupied Single Family units.

2   gsr   ignore (0)   2017 Jan 26, 10:22am   ↑ like (1)   ↓ dislike (0)   quote   flag        

Tenpoundbass says

That will never happen unless Drumpf wants his supporters joining the Idiots that were on parade last week.

This IS happening. From http://www.dsnews.com/daily-dose/01-25-2017/fannie-mae-backs-blackstone
However, not all response to the news of Fannie Mae’s action was favorable. Robert Grossinger, President of the non-profit National Community Stabilization Trust, said he was confused by the GSE’s decision.
“These investors so far have had no trouble financing the purchase of tens of thousands of homes without government support,” Grossinger said. “But if Fannie Mae determines that a taxpayer subsidy of the private sector is necessary, at the very least the arrangement with Invitation Homes should contain provisions that strengthen protections for tenants living in these homes, support affordability, and prohibit the predatory rent-to-own and installment contract arrangements that are becoming increasingly common in the single-family rental market.”

3   Tenpoundbass   ignore (15)   2017 Jan 26, 10:35am   ↑ like (0)   ↓ dislike (1)   quote   flag        

gsr says

But if Fannie Mae determines that a taxpayer subsidy of the private sector is necessary, at the very least the arrangement with Invitation Homes should contain provisions that strengthen protections for tenants living in these homes, support affordability, and prohibit the predatory rent-to-own and installment contract arrangements that are becoming increasingly common in the single-family rental market.

Basically he's worried that an investor might sell a house to an actual homeowner?

This will end up with noise and rumblings about a Trump revolt. That scares Trump the most, he listens to our rumblings. That is why the Establishment hates both equally as well.
Notice the establishment is no longer interested in bringing non-establishment voters into the fold. They want to destroy them and make them go away.

4   MMR   ignore (0)   2017 Jan 26, 12:01pm   ↑ like (1)   ↓ dislike (0)   quote   flag        

From article:

"Blackstone is a market-leader when it comes to securitization innovation. Other corporate landlords will soon jump on this bandwagon, and demand for rental properties will rise," wrote Andrew Roalstad, senior analyst at TIS Group.

"We predict the increase in these type of government-guaranteed securities will grow exponentially in the coming four years, and the impact on the rental property market will be extraordinary," added Roalstad.

"We suspect these are the types of changes that the market is pricing in with its 'Trump Rally.' Shifting corporate risk to taxpayers has been a profitable business over the past few decades, and throughout history. We expect we will see more of this shift in the coming years."

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such nonchalance, is quite chilling. I'm guessing Olick voted for Trump


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