CBRE Joins Freddie Mac's Small Balance Loan Program

McLEAN, VA—CBRE Group has joined the handful of lenders participating in Freddie Mac's Small Balance Loan initiative, which rolled out last year.

The program provides borrowers with small balance loans from the GSE that are between $1 million and $5 million for properties that are five units or more.

Lenders already participating in the program include Arbor Commercial Mortgage, Greystone Servicing Corp. and Hunt Mortgage Group.

As part of the program, Freddie Mac is securitizating the loans in a vehicle similar to a K-Deal structure, which means lenders must be able to participate in these transactions as well. Participating lenders will have show they can repurchase the obligations, Nashwa Moussa, director at Freddie Mac, told GlobeSt.com when the program was first announced. "They will also be expected to buy the B piece upon securitization. So this is not just a matter of being able to originate a small loan but also being able to take on a whole range of obligations."

CBRE became a Freddie Mac Seller/Service in 1993. Since 2011, CBRE has accounted for more than 20% of Freddie Mac's total volume each year. The CBRE Freddie Mac business is led by Mitchell Kiffe, senior managing director and co-head of Production, and Jeff Hurley, senior managing director.

Freddie Mac's Small Balance Loan offering has both fixed-rate mortgages and hybrid adjustable-rate mortgages. Terms include up to 80% LTV with underwriting that is highly competitive with the banks, allowing for maximum leverage with an interest-only component.

Freddie Mac was unable to return a call to GlobeSt.com in time for publication.