Greystone Lends $120M as Part of New Freddic Mac Program

A look at the loans Greystone has delivered to Freddie Mac.

New York—As a measure of strong demand for multifamily financing, the lending and investment specialist Greystone reports that it has originated and delivered to Freddie Mac some 44 loans totaling about $120 million in less than a year. Those loans are part of the Freddie Mac Multifamily’s first guaranteed Small Balance Loan securitization.

The GSE’s guaranteed Small Balance Loan offering, which Greystone first began selling in October 2014, includes fixed-rate and hybrid adjustable-rate mortgage loans. Their size ranges from $1 million to $5 million on multifamily acquisitions or refinancings (for properties with five or more units).

“The Freddie Mac SBL product has been well designed to compete in the small loan market,” Rick Wolf, senior managing director and head of small loans production at Greystone, told MHN. “It provides a competitive price, proceeds and process that wins business in the market. Freddie Mac and their lending and b-piece partners have now opened access to the capital markets for the small loan market.”

Besides including properties with at least five units, the Freddie Mac Small Balance Loan Terms offer partial or full term interest only; up to 80 percent LTV in certain markets; 1:25x debt service coverage ratio minimum in many markets, and 1:20x in top markets; and a 60-120 day rate lock. The loans can be hybrid ARMs or fixed-rate mortgages.

“We knew right out of the gate that the small balance loan product would be extremely competitive in the smaller multifamily market,” Wolf added. Greystone plans to continue to offer the option to multifamily owners.