Eager to make deals on apartment properties, Fannie Mae and Freddie Mac program lenders cut their interest rates at the beginning of this year. “We want to compete aggressively for business with top sponsors,” says Hilary Provinse, vice president of multifamily at Fannie Mae. That might have come as a surprise to housing market watchers. Federal officials have set tight limits on how much Fannie Mae and Freddie Mac program lenders can lend to multifamily properties—and ...

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