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Fannie Mae and Freddie Mac are extending additional relief to homeowners affected by the catastrophic flooding caused by Hurricane Harvey, HousingWire.com reported yesterday. Last week, Fannie and Freddie announced a number of measures that mortgage servicers can take to aid borrowers whose homes were damaged by the storm, including mortgage forbearance and other options. Now, with officials declaring that Harvey dumped more water on Texas than any storm in history, Fannie and Freddie announced today that each of the government-sponsored enterprises is suspending foreclosures and evictions in affected areas. Specifically, each of the GSEs is implementing a 90-day foreclosure sale suspension and a 90-day eviction suspension on borrowers whose homes are located in eligible disaster areas. Freddie Mac also said that it will be working with servicers to ensure that no property inspection costs resulting directly from Hurricane Harvey will be passed on to the affected borrowers. Read more.

ABI's thoughts are with those suffering in the wake of Hurricane Harvey. For information and ways to help, please visit https://www.abi.org/newsroom/harvey. 

Investors are raising funds to take advantage of busted condominium projects and other distressed property as a correction shows signs of spreading in parts of the commercial real-estate industry, the Wall Street Journal reported yesterday. Firms that are either raising money or are planning to start soliciting funds targeting commercial-property woes include Madison Realty Capital, Delshah Capital and a venture of investor Michael Ashner and New York developer Steven Witkoff. Most big private-equity firms, like Blackstone Group LP and KKR & Co., aren’t raising funds specifically for distressed situations. But they have money available to take advantage of condo developments falling short of sales projections, shopping centers struggling with competition from online retail, delinquent debt and other problems surfacing in several markets. To be sure, no one expects the kind of carnage that commercial property suffered during the last downturn, which cost investors billions. Many property types — like downtown office buildings and distribution centers — continue to enjoy rent growth and have access to ample financing at low interest rates.

New York state Attorney General Eric Schneiderman and retail property giant Simon Property Group Inc. reached a settlement in an antitrust case that requires Simon to end practices that the attorney general alleged protected Simon’s popular Woodbury Common Premium Outlets from competition, the Wall Street Journal reported today. Simon Property, the largest shopping mall owner in the U.S., agreed to pay the state $945,000 and revise existing leases to end restrictions that deterred retailers from opening additional outlet stores, according to a press release from the attorney general. The company didn’t deny or admit to wrongdoing, the statement said. Schneiderman said the settlement was a victory for New York regional shoppers. “No business should be allowed to stifle an entire industry at the expense of consumers — but for years, that’s exactly what Simon Property Group did to New Yorkers,” his written statement said. But Indianapolis-based Simon issued a statement after the settlement was announced describing the two-year investigation by the attorney general’s office as “meritless.”

Last week, the top mall operators delivered a blunt message to short sellers and naysayers who had expected more gloom for landlords in the bricks-and-mortar retail business: Don’t count us out just yet, the Wall Street Journal reported today. The real-estate investment trusts delivered second-quarter results that showed some resilience, with average sales productivity holding steady and occupancy rates taking a smaller-than-expected hit from retailer bankruptcies and announced store closures. Simon Property Group Inc. and Macerich Co. reported strong re-leasing activity and a pickup in same store net operating income growth, and their shares have climbed since their results were announced last week. Mall landlords said that they are working hard to fill vacated space with tenants such as restaurants and entertainment providers that draw foot traffic.

Fannie Mae and Freddie Mac could need a taxpayer bailout of as much as $99.6 billion if a severe economic downturn gripped the U.S., their regulator said yesterday, according to a MarketWatch.com report. The Federal Housing Finance Agency released the results of a stress test that examined how the mortgage finance companies would perform in what’s called a “severely adverse scenario.” The stress test was mandated by the post–financial crisis Dodd-Frank Act and the specifics of the scenario were devised by the Federal Reserve. The test found that Fannie and Freddie together would require between $34.8 and $99.6 billion, FHFA said. That’s an improvement from last year, when FHFA said the enterprises would need $125.8 billion. The two government-sponsored enterprises have operated under federal conservatorship since the 2008 crisis. In 2010, the Obama administration amended that 2008 agreement to require that Fannie and Freddie send all their profits to the Treasury and draw down remaining capital buffers until they reach zero in 2018.