Month: February 2023

Categories
Berkadia

Berkadia Partners with Rabbet

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has formed a partnership with Rabbet, the leading provider of construction finance software, to double its servicing capacity.

Berkadia’s adoption of Rabbet’s platform aligns with their commitment to long-term investments in people and technology. With Rabbet, Berkadia FHA/HUD has doubled servicing capacity, improved processing times, and developed insights to better advise customers.

“Rabbet is committed to providing the tools to service even the most complex areas of construction finance, including HUD lending,” said Will Mitchell, CEO of Rabbet. “We are excited to partner with Berkadia to streamline their processes, increase efficiency, and better serve their customers.”

Berkadia Vice President of FHA Construction Ryan Duff, added, “This partnership is a key step in our efforts to grow our FHA construction lending business. By leveraging Rabbet’s technology, we are able to significantly increase our capacity to service this important market segment.”

“Our partnership with Rabbet, a member of Berkadia’s BeEngaged network, has allowed us to collaborate on long-term initiatives, and implement solutions that deliver excellent service to our clients,” said Berkadia Senior Vice President of FHA and Seniors Housing Finance.

Rabbet’s HUD servicing solution is the first and only HUD-focused solution of its kind. This technology allows HUD lenders to read forms like the 92448 and generate the 92403 and 92451 forms which are distinct to HUD. Rabbet’s HUD solution also gives users the ability to track and report on milestones for complex capital stacks. These features and others were specifically built to accelerate and optimize the operations specifically for HUD lenders.

About Berkadia

Founded in 2009 as a 50/50 joint venture between Berkshire Hathaway and Leucadia National Corporation (now known as Jefferies Financial Group), Berkadia is a third-party commercial mortgage servicer, as well as an approved lender for Fannie Mae, Freddie Mac, and HUD/FHA.

The company is among the top Freddie Mac and Fannie Mae multifamily lenders.

Berkadia owes its origins to GMAC Commercial Mortgage Corporation, which was acquired in 2009 by Kohlberg Kravis Roberts & Co., Five Mile Capital Partners LLC, and Goldman Sachs Capital Partners. Christened Capmark Financial, the company had $10 billion of originations in 2008 and a servicing portfolio of more than $360 billion before running into bankruptcy in October 2009.

In a deal approved by the bankruptcy court, Capmark sold its mortgage loan and servicing to the newly formed Berkadia in a deal worth $515 million.

The deal brought Berkshire into the heart of the commercial loan serving business, and the company has one of the largest commercial real estate servicing portfolios.

© 2023 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
BYD

BYD EV Buses Coming to Annapolis, Maryland

(BRK.A), (BRK.B)

Buses manufactured by Berkshire Hathaway-backed BYD will be rolling in Annapolis, Maryland, after the city purchased two BYD battery-electric K7M transit buses, which will be the first in its transit fleet.

The BYD K7M seats up to 22 passengers and includes two optional ADA compliant wheelchair positions. BYD buses are equipped with unique iron-phosphate batteries that are recognized as the safest in the industry, and are built with low-floors to enhance accessibility and safety for its passengers.

“BYD is proud to join Annapolis as it starts down the path toward electrification” said BYD Senior Vice President Patrick Duan. “Annapolis is such a beautiful city, full of rich history and it’s an honor to be a part of its journey toward a greener, cleaner future.”

The Annapolis Department of Transportation, which operates Annapolis Transit, aims to provide the highest level of reliable, safe, customer-focused, accessible and efficient public transportation throughout its city. Annapolis Transit plans to enhance the quality of life through making environmentally conscious decisions with clean energy transit.

“We all have to make changes in our lives and routines to become less reliant on energy sources that contribute to climate change and sea level rise,” said Mayor Gavin Buckley. “Migrating our transit fleet from fossil fuels to electric is a step the City of Annapolis can take. We are very happy to be moving forward with this acquisition.”

The buses will be built by members of the Sheet Metal, Air, Rail and Transportation (SMART) workers Union, Local 105, in BYD’s manufacturing facility located in Lancaster, California.

© 2023 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway and BYD, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
Lessons From Warren Buffett

Lessons From Warren Buffett: We Never Talk About This

While financial commentary on TV and in print is often filled with predictions as to which direction the stock market will move, it is not something that Warren Buffett spends any time trying to predict. In fact, as Buffett points out, if he could be successful in predicting price movements, he wouldn’t ever need to buy stocks, as it would be totally unnecessary. He could just bet on stock futures.

“Charlie and I haven’t the faintest idea where the stock market is going to go next week, next month, or next year. We never talk about it. You know, it never comes up,” Warren Buffett said at the 2008 Berkshire Hathaway Annual Meeting. “Obviously, if we could guess successfully a high percentage of the time where the stock market was going to go, we would do nothing but play the S&P futures market. There wouldn’t be any reason to look at businesses and stocks.”

Hear Buffett’s full explanation

See the complete Lessons From Warren Buffett series

© 2023 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.