Certified Forensic Loan Auditors, LLC

 
  Upcoming Classes

Search CFLA's Article Archive:

Freddie Mac Launches Small Loan Program With 3 Lenders

globest.com | October 13, 2014

By Erika Morphy

McLEAN, VA—Freddie Mac has unveiled the details of a new program in which it will purchase and securitize small multifamily loans of $1 million to $5 million for assets that have least five apartment units. The GSE has a designated Small Balance Loan team for the production, pricing, underwriting, closing, purchasing and funding of these loans, which are expected to further expand the inventory of affordable rental housing in the US.

So far the GSE has tapped Arbor Commercial Mortgage, Greystone Servicing Corp. and Hunt Mortgage Group as lenders in the program. It is currently looking to add to that list of names, Nashwa Moussa, director at Freddie Mac tells GlobeSt.com.

"We will be adding lenders as they are reviewed and approved," she says, noting the GSE is "actively looking for sellers and servicers with experience in this space. Small loan creds can be rather rare as typically it is local lenders that provide financing to small multifamily properties. It is not, in other words, a skill set found at many national shops that offer standardized products.

Besides understanding the space, lenders will have show they can repurchase the obligations, Moussa says. "They will also be expected to buy the B piece upon securitization. So this is not just a matter of being able to originate a small loan but also being able to take on a whole range of obligations."

The securitization will be similar to the K-deal structure in that Freddie Mac will sell the first loss risk to private capital. The originating sellers must purchase the subordinate bonds on their loans, which they can then sell in whole or in part to third party investors.

Freddie Mac anticipates that the average loan will be about $2.5 million. About 29% of the multifamily loan market is comprised of smaller loans with an average loan size of $1.2 million, according to 2012 data from Trepp.

 

Back to October 2014 Archive

CFLA was founded by the Nation's Leading Foreclosure Defense Attorneys back in 2007 to serve the Foreclosure Defense Industry and fight pervasive Bank Fraud. Since opening our virtual doors, CFLA has rapidly expanded to become the premier online legal destination for small businesses and consumers. But as the company continues to grow, we're careful to hold true to our original vision. For us, putting the law within reach of millions of people is more than just a novel idea—it's the founding principle, just ask Andrew P. Lehman, J.D.. With convenient locations in Houston and Los Angeles, you can contact Our National Account Specialist and General Manager / Member Damion W. Emholtz at 888-758-2352 for a free Mortgage Fraud Analysis or to obtain samples of work product, including cutting edge Bloomberg Securitization Audits, Litigation Support, Quiet Title Packages, and for more information about our Nationally Accredited and U.S. Department of Education Approved "Mortgage Securitization Analyst Training Certification" Classes (3 days) 24 hours for approved CLE & MCLE Credit (Now Available Online).

SEE BELOW- http://www.certifiedforensicloanauditors.com

Call us toll free at 888-758-2352

Bookmark and Share
spacer
Facebook Like us on Facebook
Twitter Follow us on Twitter
YouTube View our YouTube Videos
LinkedIn Connect to us on Linkedin
 
BBB Logo

 

spacer
Contact us or view our Sample Documents & Audits by completing the form below.

  • Reload
  • Should be Empty:




 

DVD Sets Only $99

 

FREE Mortgage Fraud Analysis

 

Order Cutting-Edge Services Now

 

Quiet Title Packages from Licensed Attorneys

 

Affiliate Services

 

CFLA Sponsored Attorney Links

 

Take-Home Education Package