For multifamily lenders, small loans are big business. Small loans are estimated to make up almost 30% of the multifamily market. In an attempt to become more competitively involved in this space, Freddie Mac last month launched its Small Balance Loan (SBL) Program. The program marks the organization’s entrance into what they’ve called an “undeserved” market, and mirrors Fannie Mae’s increased focus on SBLs in its 2.0 guidelines to become effective by the end of the year.
Freddie Mac will use the SBL program to further support affordable housing by providing a platform to purchase and securitize small multifamily loans. The program requires originating seller/servicers to purchase the B-pieces secured by their underlying loan, which in turn can be sold to other investors. To promote liquidity, Freddie Mac has simplified some underwriting and due diligence requirements that will facilitate more competitive pricing and streamlined deal cycles. Loans approved through the program are subject to a number of conditions, including:
Continue reading the Commercial Property Executive blog here.
March 13, 2025
The hospitality sector is enjoying renewed interest from investors, with more deals in the pipeline, increased refinancings, and improved transaction volume. While the industry still faces challenges, optimism prevails for modest growth over the next year.
March 11, 2025
What are grandfathered uses, also known as legal nonconforming uses and what do you do? Partner’s experts, Alexis Whipple, and Sara Ehrentreu outline practical scenarios and explain the options that you can take in this article.
March 06, 2025
Beyond the immediate damage caused by flames, residual damage caused by smoke and soot can leave lingering effects requiring thorough restoration and clean-up of your commercial or residential property. Understanding the smoke damage cleanup process and knowing what to expect can help commercial and residential property owners navigate this challenging time more effectively.
