MuniMae Sells Agency Business To Oak Grove

Posted by Orb Staff on December 24, 2008 No Comments
Categories : Commercial Mortgage

Municipal Mortgage & Equity LLC (MuniMae) has agreed to sell its agency lending operations to Oak Grove Commercial Mortgage LLC, a newly formed subsidiary of Mud Duck Equities LLC.

The two-part transaction consists of a $10 million bridge loan from Oak Grove, accompanied by an acquisition agreement pursuant to which Oak Grove will acquire the business. Upon closing of the sale, MuniMae will receive $23.5 million in a combination of cash and forgiveness of the loan and, in addition, will receive two series of dividend-paying preferred interests in Oak Grove with a combined principal amount of $47 million (subject to reduction of a portion of the preferred interests under some circumstances).

MuniMae's agency business consists of the underwriting and origination of affordable housing and market rate multifamily apartment project loans that are sold to insured by or guaranteed by the government-sponsored enterprises Fannie Mae and Freddie Mac and government agencies the Department of Housing & Urban Development and the Federal Housing Administration. MuniMae originates and, in most cases, sells the loans to these agencies, and remains engaged as the loan servicer.

‘This sale is an important transaction for MuniMae, as it provides us with working capital in this difficult operating environment," says MuniMae CEO Michael F. Falcone.

SOURCE: MuniMae

Register here to receive our Latest Headlines email newsletter




Leave a Comment