MuniMae sells its mortgage lending business

Dec 23,2008 00:00 by admin
Municipal Mortgage and Equity LLC, better known as MuniMae, has sold its business of loaning mortgages to developers for $70 million.

Oak Grove Commercial Mortgage will pay $23.5 million in a combination of cash and loan forgiveness. MuniMae will also get an interest in Oak Grove worth $47 million, the company said Monday.

The sale comes as Baltimore-based MuniMae tries to recover from the collapse of the mortgage industry in the first half of the year. The company had to sell off its loan business for cash to cover debts, it said in a Securities and Exchange Commission filing.

MuniMae provides debt and equity financing to developers of multi-family housing units, and offers investment advisory services to institutional investors.

The company originates loans that are in most cases sold to government-sponsored Fannie Mae and Freddie Mac or to the U.S. Department of Housing and Urban Development.

http://www.bizjournals.com/baltimore/stories/2008/12/22/daily25.html