Your Multifamily Lending Update by EM CAPTIAL LLC.
UPDATE - 93.3% of 11.4 million renters made a full or partial rent payment in May compared to 94.8% for the same period last year. Check out the tracker here.
Fannie/Freddie: Fannie and Freddie remain committed to supplying market liquidity and working to meet housing needs. Fannie and Freddie also promoted new SOFR based floating rate loans that should be available in the coming months as they transition away from LIBOR. Read more about SOFR rates here.
Fannie: Fannie saw nearly flat activity in new applications as they continue to offer competitive rates.
Freddie: Freddie saw a spike in applications last week due to pricing enhancements, debt service reserve improvements and as mentioned the return of the index lock.
Freddie Mac’s SBL product is now permitting borrowers to request their debt service reserves to be released if requirements are met. SBL volumes continue to see se momentum with refinance requests as rates remain very low.
CMBS: Ready. Set. Sell.
The CMBS market continues to prioritize selling PRE-COVID inventory, Wells Fargo recently came priced a $700M conduit transaction that consisted of 46 loans from seven different contributors. The transaction priced right on top of where the secondary market was trading. This is a very good sign for liquidity. New loans are being originated but remain conservative.
Life Insurance Companies: Life insurance companies are now optimistic about reopening and motivated by the strong collections rate for May has encouraged competition for new deals. This newfound increase in demand, should prompt life companies to loosen their underwriting standards.
FHA/HUD: Continued record high levels of submittals to HUD.
The current HUD pipeline activity is up over 20% from just 30 days ago. Again, this is due to high refinance demand and low construction rates. The market is seeing a fairly steady 10-year treasury hovering at 60-70 basis points. It is important to note this activity consists of current or prior HUD borrowers and new HUD borrowers.