McLEAN, VA—Freddie Mac has unveiled the detailsof a new program in which it will purchase and securitize smallmultifamily loans of $1 million to $5 million forassets that have least five apartment units. The GSE has adesignated Small Balance Loan team for the production, pricing,underwriting, closing, purchasing and funding of these loans, whichare expected to further expand the inventory of affordable rentalhousing in the US.

So far the GSE has tapped Arbor Commercial Mortgage,Greystone Servicing Corp. and Hunt MortgageGroup as lenders in the program. It is currently lookingto add to that list of names, Nashwa Moussa,director at Freddie Mac tells GlobeSt.com.

"We will be adding lenders as they are reviewed and approved,"she says, noting the GSE is "actively looking for sellers andservicers with experience in this space. Small loan creds can berather rare as typically it is local lenders that provide financingto small multifamily properties. It is not, in other words, a skillset found at many national shops that offer standardizedproducts.