Essentially, the partnership is underwriting the bank that has made the primary loan as a counterparty, Howard Smith, COO of Green Park Financial, tells GlobeSt.com. "The bank will maintain its relationship with the primary borrower." It will also be able to lend more to the local community because its existing loans have been cycled off of its balance sheet, he adds.

Properly vetting that bank--especially given the potential exposure to real estate assets and securities in many community banks' portfolios--is a key part of the process, Smith says. "This is definitely a credit issue for us."

By contrast, Fannie Mae's appetite for these deals--or lack thereof--is not a concern. The GSE, along with Freddie Mac, was placed in conservatorship last week, but Smith and his partners say that will have little impact on its multifamily activities. "It's business as usual for them," Todd Watkins, principal for J.S. Watkins, tells GlobeSt.com. Small loans have been of interest to Fannie Mae for a while--and the agency has many programs in place that target this space--but it has not had the resources to purchase pools under $100 million. "It has been looking for a way to capture this part of the market, which is why they were so receptive to our proposal," Jon Siegel, principal with J.S. Watkins, tells GlobeSt.com.