NEW YORK CITY—Real estate lender Greystone has taken advantage of the fast-growing and highly popular Freddie Mac small balance loan securitization program.
The locally-based firm has originated more than $500 million under the program—a milestone it says has not been reached by any other firm. Greystone has provided more than 180 Freddie Mac SBL mortgages.
In late August, GlobeSt.com reported that two Freddie Mac programs, including its small balance loan securitization program, separately priced more than $1.2 billion in multifamily loans. Freddie Mac securitized its first portfolio of multifamily small loan balances earlier that month.
Freddie Mac announced the launch of the SBL program in October 2014 and named Greystone as one of three participating lenders in the program that generally involves loans ranging from $1 million to $5 million. Current loan terms for Freddie Mac's SBL offering include a hybrid ARM with initial 5-, 7-, or 10-year fixed-rate periods or 5-, 7-, or 10-year fixed-rate balloon loans, all with up to a 30-year amortization. Eligible properties for this loan product include conventional multifamily housing with five residential units or more, including conventional housing with tax abatements.
“Appetite for Freddie Mac's small balance loan product has been incredibly strong as it is a very competitive product that is being well received throughout the market,” states Rick Wolf, senior managing director and head of Greystone's small loan lending group.
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