LOS ANGELES—Freddie Mac's Fast TrackEarly Rate-Lock program has an advantage over banksbecause it can lock in a rate for a longer period of time,according to Allan Freedman, SVP withBerkadia Commercial Mortgage. In anearlier story, GlobeSt.com reported that Freedmanhelped to secure $79.5 million in financing through the program torefinance a nine-property multifamily portfolio inLos Angeles.

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“The Fast Track program was an ideal fit for the client's needs,as it streamlined the process, minimized documentation requirementsand allowed them to quickly secure financing given interest ratevolatility,” Freedman tells GlobeSt.com. The Fast Track programallows borrowers to lock in the rate and the loan amount quicklyafter application. In this specific case, Freedman was able to lockin the rate only a few days after signing the application.

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In addition to the rate-lock, Freddie Mac was the clear betteroption in this case becasue it waived prepayment penatlies. “Therewas competition from the banks, and the borrower faced an existingprepayment penalty that didn't burn off until the end of the year,”says Freedman. “Freddie Mac ultimately had the advantage, as theycould lock the rate for an extended period of time—something thebanks could not do—and waived the prepayment penalty portion.”

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Freedman locked in an interest rate of approximately 4% for thenearly $80 million fixed-rate loan, which had a 10-year term and a3.5-month early rate lock. The loan has a 65% loan-to-value and a30-year amortization schedule with some prepayment penaltieswaved.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.