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 Call Us: +44 (0)20 3865 7701
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Partner Engineering and Science, Inc.
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You are here: Home » Resources » Articles » Freddie Mac Rolls Out New Small Loan Program

October 27, 2014

Freddie Mac Rolls Out New Small Loan Program

By Drew McCreery

IN AN EFFORT TO BECOME MORE COMPETITIVELY INVOLVED IN THE SMALL BALANCE LOAN MARKET…

In an effort to become more competitively involved in the small balance loan market and to further support affordable housing, Freddie Mac on October 9, 2014 launched a Small Balance Loan Platform (“SBL”) to purchase and securitize small multifamily loans. In order to maintain a level of quality in securitization, the originating seller/servicer will be obligated to purchase the B-pieces secured by their underlying loan, which in turn can be sold to other investors. As of this posting, they have a growing pipeline of deals between $90-$100 million. While most are in the early stages of quoting loans, many deals are under application and in the underwriting phase. Freddie Mac states that the program is designed to “increase liquidity in the small balance space and provide stability in this somewhat under-served market.” Small loans are estimated to comprise almost 30% of the multifamily market. Freddie’s entrance into this space mirrors the increased focus on small balance loans in Fannie Mae‘s 2.0 guidelines that are to go live by the end of the year.

Continue reading the GlobeSt blog here.

About the Authors

Drew McCreery

Drew McCreery

Managing Director, Multifamily
Drew H. McCreery serves as Managing Director, Multifamily as well as serving in a technical capacity as Technical Director of Agency Services at Partner Engineering and Science, Inc. As managing director, and with more than 20 years of commercial real estate experience, he is responsible for understanding and communicating the nuances of agency reporting requirements as well as the unique needs of multifamily assessments. Mr. McCreery’s multifamily role incorporates Agency, LIHTC, HUD, and multifamily Debt/Equity associated with all scopes (PCA, ESA, ALTA, Construction, Zoning, and IH) under one umbrella in order to provide a more holistic approach with refined tools and resources to help us cater to our clients and deliver the highest and most consistent quality. Thus allowing for increased communication and thought leadership to the various entities and institutions including Fannie Mae, Freddie Mac, The Department of Housing and Urban Development, State Housing Authorities, and various multifamily national organizations to assist in policy and maintain Partner as an industry leader through collaboration and partnership.

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