MuniMae Closes Sale of Agency Business

pal Mortgage & Equity LLC (MuniMae) has closed on the sale of its agency lending operations to Oak Grove Commercial Mortgage LLC – a new company formed by Mud Duck Equities LLC. Under the two-part transaction originally [link=][u]announced last December[/u][/link] and [link=][u]modified in February[/u][/link], MuniMae received a $15 million bridge loan from Oak Grove and agreed to sell its agency loan operations to Oak Grove in a transaction in which MuniMae would receive $23.5 million in a combination of cash and forgiveness of the loan and three series of preferred interests in Oak Grove, with a combined liquidation preference of $47 million. The preferred interests are subject to reduction in some instances, including reduction of up to $30 million to the extent Oak Grove is required to make loan loss-sharing payments to Fannie Mae and other government-sponsored agencies with regard to loans that had been sold to those agencies by MuniMae. The business MuniMae sold consists of underwriting, originating and servicing affordable housing and market-rate multifamily apartment project loans that are sold to or insured or guaranteed by Fannie Mae, Freddie Mac and the U.S. Department of Housing and Urban Development. SOURCE:


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