MCLEAN, VA—Freddie Mac has made the first twoloans under its Small Balance Loan offering that it first unveiled inOctober.

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The transactions were originated by Dale Holzerin Greystone's Newport Beach, CA, office torefinance smaller rental properties in Los Angeles.

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The loans were $1.9 million for a six-unit property and $2.6million for a 10-unit property

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The Small Balance Loan program is meant to provide long-termdebt capital for borrowers seeking to acquire or refinancemultifamily properties with at least five units. The hybrid ARM orfixed-rate mortgage loans for these smaller properties rangebetween $1 million and $5 million. Terms include up to 80% LTV,allowing for maximum leverage with an interest-only component.

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The Freddie Mac Small Balance Loan offering is also non-recourseand the loans have step-down prepay availability. BesidesGreystone, other lenders in the program include Arbor CommercialMortgage and Hunt Mortgage Group.

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Freddie Mac will eventually securitize these loans

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