Freddie Mac Multifamily Seller/Servicer
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A Freddie Mac Multifamily Seller/Servicer is an entity that is permitted to sell multifamily loans to Freddie Mac, service Freddie Mac multifamily loans, or both. In order to become a Seller/Servicer, a company must be organized under federal or state law, needs to be a permanent, stable organization, and must be fully authorized to conduct business anywhere it is originating or servicing mortgages. Recently, Freddie Mac rebranded its network of Seller/Servicers, which is now referred to as the Optigo Network. Optigo is intended to streamline the loan origination and approval process while increasing certainty of execution, even for challenging loans.
In regards to the Freddie Mac SBL program, there are currently 11 Optigo seller/servicers authorized to originate and sell these loans to Freddie Mac, including Greystone, CBRE, and Hunt Mortgage Capital.
Related Questions
What are the requirements for becoming a Freddie Mac Multifamily Seller/Servicer?
In order to become a Freddie Mac Multifamily Seller/Servicer, a company must be organized under federal or state law, needs to be a permanent, stable organization, and must be fully authorized to conduct business anywhere it is originating or servicing mortgages. Additionally, servicers and sellers must meet a specific set of guidelines, which include collateral, undergoing a rigorous assessment, B-piece purchase, loss sharing, repurchasing of delinquent SBLs and origination of at least $50 million per quarter.
What are the benefits of being a Freddie Mac Multifamily Seller/Servicer?
Being a Freddie Mac Multifamily Seller/Servicer has many benefits, including a streamlined underwriting process, competitive pricing, less documentation, and either hybrid ARM or fixed-rate loan products. Additionally, the Optigo Network, which is the rebranded network of Seller/Servicers, is intended to streamline the loan origination and approval process while increasing certainty of execution, even for challenging loans. Source
In regards to the Freddie Mac SBL program, there are currently 11 Optigo seller/servicers authorized to originate and sell these loans to Freddie Mac, including Greystone, CBRE, and Hunt Mortgage Capital. Source
Advantages of Freddie Mac Multifamily Loans include highly competitive pricing, early rate lock, up to 80% LTV, partial-term and full-term interest-only available, supplemental loans are available, and non-recourse. Source
What types of loans does Freddie Mac Multifamily Seller/Servicer offer?
Freddie Mac Multifamily Seller/Servicer offers several types of loans, including the Small Balance Loan (SBL) program, Conventional loans, and Supplemental Loans. The SBL program offers loans in amounts as low as $750,000 with fixed and adjustable-rate terms up to 10 years and 30-year amortizations. Freddie Mac Conventional loans offer loans between $5 million and $100 million with fixed-rate and floating-rate programs. Lastly, Supplemental Loans are available for current borrowers to provide them with additional funding when needed. For more information, please see the following sources:
How do I apply for a Freddie Mac Multifamily Seller/Servicer loan?
You can apply for a Freddie Mac Multifamily Seller/Servicer loan by filling out the form on this page. Additionally, you can become a Seller/Servicer by meeting the requirements outlined here. Once you become a Seller/Servicer, you can originate and sell loans to Freddie Mac through the Optigo Network. You can also apply for a Freddie Mac Small Balance Loan (SBL) program loan, which offers loans in amounts as low as $750,000 with fixed and adjustable-rate terms up to 10 years and 30-year amortizations. For more information on how to purchase an apartment property, please see this page.
What are the terms and conditions of a Freddie Mac Multifamily Seller/Servicer loan?
Freddie Mac Multifamily Seller/Servicers in Relation to the Freddie Mac SBL Program
A Freddie Mac Multifamily Seller/Servicer is an entity that is permitted to sell multifamily loans to Freddie Mac, service Freddie Mac multifamily loans, or both. In order to become a Seller/Servicer, a company must be organized under federal or state law, needs to be a permanent, stable organization, and must be fully authorized to conduct business anywhere it is originating or servicing mortgages. Recently, Freddie Mac rebranded its network of Seller/Servicers, which is now referred to as the Optigo Network. Optigo is intended to streamline the loan origination and approval process while increasing certainty of execution, even for challenging loans.
In regards to the Freddie Mac SBL program, there are currently 11 Optigo seller/servicers authorized to originate and sell these loans to Freddie Mac, including Greystone, CBRE, and Hunt Mortgage Capital.
Terms include:
Size Loans start at $1 million Terms 5-, 7-, and 10-year loan terms permitted (longer terms may be negotiated on a case-by-case basis); both fixed- and adjustable-rate financing are available, with a variety of I/O loan options. Amortization Up to 30 years Recourse The majority of loans are non-recourse with standard carve-outs Maximum LTV/Minimum DSCR - 5- to 7-Year Loans:
- Amortizing: 75%/1.30x
- Partial Term Interest-Only: 75%/1.30x
- Full Term Interest-Only: 65%/1.40x
- 7-Year Loans:
- Amortizing: 80%/1.25x
- Partial Term Interest-Only: 80%/1.25x
- Full Term Interest-Only: 70%/1.30x
- 7+ Year Loans:
- Amortizing: 80%/1.25x
- Partial Term Interest-Only: 80%/1.25x
- Full Term Interest-Only: 70%1.35x
Prepayment Options Yield maintenance is permitted before the loan is securitized. After securitization, loans are subject to a 24-month lock-out. After this, defeasance is permitted, but, for a fee, borrowers can opt for a yield maintenance prepayment structure. Prepayment penalties are waived for the final 3 months of the loan term. Eligible Properties - 5+ pad sites required
- 25% or less of manufactured homes may be rented out
- Homes must comply with safety standards set by HUD and must follow rules set by the Federal Manufactured Home Construction and Safety
- 5- to 7-Year Loans: