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Thu Oct 1, 2020, 07:11 AM

The Kushners' Freddie Mac Loan Wasn't Just Massive. It Came With Unusually Good Terms, Too.

https://www.propublica.org/article/the-kushners-freddie-mac-loan-wasnt-just-massive-it-came-with-unusually-good-terms-too

Despite a history of underperforming properties, Kushner Companies received a near-record sum from a government-backed lender. Should it default, taxpayers could be forced to foot much of the bill. The agency says politics played no role.

by Heather Vogell Oct. 1, 4 a.m. EDT

This story is co-published with WNYC.

After the news broke in May of last year that government-sponsored lending agency Freddie Mac had agreed to back $786 million in loans to the Kushner Companies, political opponents asked whether the family real estate firm formerly led by the presidentís son-in-law and top adviser, Jared Kushner, had received special treatment.

ďWe are especially concerned about this transaction because of Kushner Companiesí history of seeking to engage in deals that raise conflicts of interest issues with Mr. Kushner,Ē Sens. Elizabeth Warren, D-Mass., and Tom Carper, D-Del., wrote to Freddie Macís CEO in June 2019.

The loans helped Kushner Companies scoop up thousands of apartments in Maryland and Virginia, the businessís biggest purchase in a decade. The deal, first reported by Bloomberg, also ranked among Freddie Macís largest ever. At the time, the details of its terms werenít disclosed. Freddie Mac officials didnít comment publicly then. Kushnerís lawyer said Jared was no longer involved in decision-making at the company. (He does continue to receive millions from the family business, according to his financial disclosures, including from some properties with Freddie Mac-backed loans.)

Freddie Mac packaged the 16 loans into bonds in August 2019 and sold them to investors. But Kushner Companies hadnít finished its buying spree. Within the next two months, records show, Freddie Mac backed another two loans to the Kushners for an additional $63.5 million, allowing the company to add two more apartment complexes to its portfolio.

A new analysis by ProPublica shows Kushner Companies received unusually favorable loan terms for the 18 mortgages it obtained with Freddie Macís backing. The loans allowed the Kushner family company to make lower monthly payments and borrow more money than was typical for similar loans, 2019 Freddie Mac data shows. The terms increase the risk to the agency and to investors who buy bonds with the Kushner mortgages in them.

-/snip-



of course...

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Reply The Kushners' Freddie Mac Loan Wasn't Just Massive. It Came With Unusually Good Terms, Too. (Original post)
Dennis Donovan Oct 1 OP
soothsayer Oct 1 #1
3Hotdogs Oct 1 #2
Demovictory9 Oct 1 #3
jaxexpat Oct 1 #4

Response to Dennis Donovan (Original post)

Thu Oct 1, 2020, 07:19 AM

1. Pretty sure the government conservator (FHFA) would have had to ok it

Hell, they probably directed it, since Fannie and Freddie remain in indentured servitude, unable to repay the government loans from 2008 because Treasury takes all their profits.

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Response to Dennis Donovan (Original post)

Thu Oct 1, 2020, 07:58 AM

2. If he can't pay it, does our socialist gub'mint get to keep the properties?

Do the residents get tax breaks?

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Response to Dennis Donovan (Original post)

Thu Oct 1, 2020, 08:21 AM

3. K&r

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Response to Dennis Donovan (Original post)

Thu Oct 1, 2020, 09:26 AM

4. I'm gob smacked. Shocked as well.

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