Yield PRO TV Rate Desk April 7, 2020

April 7 edition notes:
• DJIA up 22,789
• V-shaped recovery possible
• Stocks on track for 2-day win
• US Treasury opened at .77
• FHA 223(f) tightened 2.57%
• FHA 221(d)(4) still 3.30%
• Fannie 3.36%
• Freddie 3.44%
• Freddie requires fully amortizing DS Reserve
• 6-9 months regardless of due diligence
• Certain cases allow for 12 months and 18 months for specialty (like student housing)
• FNMA on typical Tier 2 75-80% LTV, 1.25 DSCR for 12 months of P&I
• Consider spread between cap rates and 10yr UST Yields
• Average cap rate (5.75) - .72 = 5.03 spread
• Investors choose MF real estate over risk-free gov’t bonds