Week of 5/18 - Multifamily Lending Update
Your Multifamily Lending Update by EM CAPTIAL LLC.
87.7% of apartment households made a full or partial rent payment.
The index lock is now available for many conventional and TAH cash preservation loans. Exclusions include: Seniors, student, and supplemental loans.
What is an index lock? The index lock allows current borrowers to lock in the most volatile section of the coupon (treasury index) at any point during the underwriting or quote process.
Fannie: Fannie Mae is pursuing and winning more deals due to the stable MBS market and strong fixed rate pricing. They have also revealed continued flexibility with DS reserves for “tier three” deals along with leniency with the replacement reserve and TI portion of the reserves for certain “tier two” deals.
Freddie: Freddie Mac has revealed they will continue their spread hold that are subject to “severe market disruption” benchmarks. Freddie Mac has also signaled confidence in building their deal pipeline and providing the market additional liquidity. They have also lowered their SBL rates by nearly 20 basis points this past week, now inline with Fannie, to drive production levels. It is important to note that more than 90% of applications are for refinances pricing between 55% - 65% LTV range.
CMBS: Making progress: Unchanged, and positioning to create capacity for summer deals.
Life Insurance Companies: Status Quo.
FHA/HUD: Continuing to see activity, though they are looking to improve internal processes and requirements for lending.