Caine Mitter and its predecessors have been providing advice on the financing of affordable housing since 1978, when Thomas Caine left Paine Webber to start Caine & Midgley Incorporated. While at Paine Webber, Mr. Caine moved through the ranks in the Municipal Bond Department, starting as a clerk on the trading desk and becoming a trader in both the primary and secondary markets. He joined the Public Finance Department at its creation in 1971. The 1970s were the formative years for housing finance agencies, and he played a key role in the start up of almost half the State housing finance agencies. Mr. Caine went on to manage the Department. During this period, Paine Webber was ranked number one in housing finance. While at Paine Webber, he created the financing structure that became the model for housing finance agencies, as well as the precursor for asset backed structured finance.

From its inception, Caine & Midgley Incorporated was unique as a financial advisory firm for the following reasons:

  • The firm was the first independent financial advisor (i.e., not affiliated with an investment banking firm) to offer all of the services traditionally provided by investment banking firms except the underwriting and sale of securities
  • The firm was the first financial advisor to concentrate in a single area of the municipal market

Over the years, the firm has evolved, taking on several different names in the process (Caine & Midgley Incorporated, Caine Gressel Midgley Slater Incorporated and CGMS Incorporated), but has maintained its focus on the housing sector. The professionals from these predecessor firms who went on to form Caine Mitter have acted as financial advisor on nearly 2,100 financings totaling over $54.2 billion.

When the housing finance sector first developed in the 1970s, intricate structuring and complex federal tax law requirements combined to make housing finance the most complicated area of public finance. Over the years, the complexity has only grown. The development of new financing techniques and mortgage products has increased both opportunities and risk considerations. Federal tax legislation and regulations have evolved, creating additional hurdles. Many investment banking firms have come and gone, leaving housing finance agencies in need of new underwriters and counterparties. As market conditions have changed, Caine Mitter has always been there to help housing finance agencies respond to and take advantage of the prevailing environment, in order to better carry out their mission of providing affordable housing.