Fannie and Freddie loans could pose conflicts for Kushner

TRD New York /
Feb.February 17, 2017 10:10 AM

Kushner Companies has $568.8 million in loans backed by Fannie Mae and Freddie Mac outstanding, creating the potential for conflicts of interest as White House and Congress debate the future of the two mortgage giants.

The real estate company owns around 20,000 apartments on the Eastern Seaboard, and has taken out Fannie and Freddie loans to finance 11 acquisitions and refinance 3 properties, mostly in Maryland, according to Real Capital Analytics.

Jared Kushner, who headed Kushner Companies until January, now works as a senior adviser to his father-in-law, President Donald Trump. He has vowed to sell his stakes in real estate assets and to recuse himself from decisions impacting the family business. A Kushner spokesperson declined to tell Bloomberg whether Jared still holds stakes in properties with Fannie or Freddie loans.

“The election has not changed Kushner Companies’ relationship with Fannie Mae and Freddie Mac,” the spokesperson said to Bloomberg. “And we will respond to policy changes like any other private company in the marketplace.”

If Kushner were to default on any of the loans in questions, it could put the two companies, which are currently in government conservatorship, in the uncomfortable position of having to foreclose on assets controlled by the president’s immediate family.

“It clearly represents a conflict-of-interest because the government or the president can take actions that would benefit his family,” Brooklyn Law School professor David Reiss told Bloomberg.

The White House has announced it plans to overhaul the housing finance system, in a move that would likely also impact multifamily lending. [Bloomberg]Konrad Putzier


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
The proposal to rezone Industry City in Brooklyn was unveiled five years ago, but collapsed under political pressure (Courtesy of Industry City)

Here’s how Industry City’s controversial rezoning unraveled

Here’s how Industry City’s controversial rezoning unraveled
A U.S. District judge has given tenants a seat at the table in the legal challenges to New York’s rent law, defying attorneys representing landlords. (iStock)

Tenants get seat at table for legal challenges to rent law

Tenants get seat at table for legal challenges to rent law
United Wholesale Mortgage Mat Ishbia and Gores Holdings IV CEO Alec Gores (Photos via United Wholesale Mortgage and Gores)

United Wholesale Mortgage goes public with $16B valuation

United Wholesale Mortgage goes public with $16B valuation
Industry City CEO Andrew Kimball with Amazon CEO Jeff Bezos (Photos via Getty; iStock; Industry City)

Real estate hits bottom as Industry City abandons plan

Real estate hits bottom as Industry City abandons plan
New York Assembly Speaker Carl Heastie and Senate Majority Leader Andrea Stewart-Cousins (Getty)

New York lawmakers push for new millionaires’ tax

New York lawmakers push for new millionaires’ tax
Manhattan Detention Complex at 125 White Street and State Supreme Court Judge John Kelley (Google Maps; Ballotpedia)

Chinatown jail that would replace Rikers is halted by judge

Chinatown jail that would replace Rikers is halted by judge
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...