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Bascom Group's Fink

'Liquidity is needed more in the distressed markets.'

By Sule Aygoren Caranzza | Updated on April 20, 2010

When Freddie Mac unveiled its new mezzanine financing program recently, it captured a great deal of attention from those in the industry. After all, one would not expect to see a new financing program offered at a time when the debt markets are tight to begin with, particularly with so many properties underwater on their mortgages. But will Freddie’s new program—which would allow borrowers to finance properties at up to 90% LTV though a combination of traditional and mezzanine debt—be a game changer, a non-issue or make the current situation worse?

That was what GlobeSt.com’s poll question last week endeavored to answer. Some 85 readers responded to the survey, with 68% saying Freddie’s new mezz program will elongate the pain and write-downs that are ultimately necessary, and 32% believing the program will help stabilize the market.

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