Analysis

U.S. Multifamily Market Snapshot — May 2024

Key fundamentals of the U.S. multifamily remained strong to start 2024. Despite fears of oversupply, rent growth remained stable and vacancy rates remained near historical lows.

Articles

Arbor Marketing Campaign Wins Two Awards at Industry Gala

For more than 30 years, Arbor has been committed to building strong bonds with clients that lead to mutual success. This philosophy is at the heart of a unique Arbor marketing campaign, The Art of Growing Financial Partnerships, which received two awards at the 30th Annual Financial Communications Society (FCS) Portfolio Awards Gala in New York City on May 2. The campaign, which was featured in two private jet terminals, used original stained-glass pieces to build brand awareness among high-net-worth travelers.

Articles

Top SFR Annual Rent Growth Markets

Even as rents retreated elsewhere, single-family rentals (SFR) have continued to outperform all other housing sub-types, exceeding the all-property type national average in 17 consecutive months through February 2024, according to Zillow’s Observed Rent Index (ZORI). Annual SFR rent growth has seen substantial gains in many metropolitan areas since national rent growth peaked in March 2022. In this deep dive, the Chandan Economics and Arbor Realty Trust research teams pinpoint the metropolitan areas where SFR rents are rising the fastest.

Articles

Arbor’s New True Colors Show Our Creativity and Green Roots

For more than 30 years, Arbor has been committed to growing financial partnerships that meaningfully impact communities nationwide. From planting trees to celebrate closed loans to supporting environmental organizations, our work has always been a win-win for our financial partners and the planet. But just as leaves change with each passing season, Arbor’s branding is evolving to seize the moment by embracing our roots with True Colors.

Articles

Five Advantages of Adding Fannie Mae Green Rewards to a Multifamily Loan

Since the Fannie Mae Green Rewards program launched in 2015, green financing has become a mainstay of commercial real estate. In addition to reducing the environmental impact of multifamily housing, the Green Rewards program creates a triple bottom line with increased cash flows, higher quality housing, and lower energy and water usage. With a high upside and little downside, the program is well worth multifamily borrowers’ consideration.

Articles

CRE Solutions for a Greener Planet Build Momentum

From California wildfires to rising sea levels to Florida hurricanes, the direct and indirect risks of climate change have grown in recent years, making a more substantial impact on the multifamily sector. As the need for sustainability becomes increasingly apparent, lawmakers and lenders have advanced programs and policies that show “going green” is a win-win.

Current Reports

Affordable Housing Trends Report Spring 2024

As housing costs spiral, rental affordability has become a more urgent issue, burdening a greater number of Americans. Arbor’s Affordable Housing Trends Report Spring 2024, developed in partnership with Chandan Economics, examines the major policies and programs shaping the marketplace at a time when overdue federal funding expansions have increased agency budgets.

General: 800.ARBOR.10

FREDDIE MAC®

Early Rate Lock (ERL)

Eliminates interest rate risk early in the mortgage approval process and provides peace of mind for borrowers that are concerned about market volatility.

What is an Early Rate Lock? Ability to lock the interest rate for a fixed-rate mortgage or the spread for a floating-rate mortgage, establish the mortgage amount and set other key provisions of a proposed mortgage within two to five days after Freddie Mac’s preliminary underwriting review and long before the Arbor lender submits the full underwriting package.
Benefits of an Early Rate Lock Fast and efficient – Limited information needed for review of the preliminary underwriting package

Cost savings – Significant savings when interest rate or spreads are rising

Flexibility – Some aspects of the transaction can be modified after rate lock at full underwriting:

  • Loan amount can be increased by up to 10% if positive net operating income (NOI) growth is demonstrated
  • No breakage fee for decreases in the loan amount that are within 10% of the preliminary underwriting amount due to decreases in NOI, appraised values that are lower than the underwritten value, etc.
Eligible Products Conventional loans, including supplemental and refinances, and TAH loans.
How Early Rate Lock Works Preliminary Quote

  • Arbor submits the Loan Submission Template and requests quote with an ERL
  • Freddie Mac Production reviews the submission and obtains the pricing quote
  • Arbor reviews and accepts quote

Preliminary Underwriting Package
Arbor provides documents for ERL execution detailed in the Freddie Mac Multifamily Seller/Servicer Guide

Rate Lock

  • Mortgage amount and other key provisions must be set within two to five days after the preliminary underwriting review
  • After Freddie Mac’s preliminary underwriting and due diligence are complete and the loan has been approved for ERL, Freddie Mac provides Arbor with the maximum mortgage amount and all loan terms.
  • Freddie Mac provides the early rate lock application (ERLA) to Arbor for sign-off
  • After ERLA execution, Freddie Mac will lock in the submitted terms

After Rate Lock
Following the rate lock, Arbor retains a good faith deposit equal to 2% of proposed loan amount (if refinancing an existing Freddie Mac portfolio loan, borrowers may post a demand note in lieu of a good faith deposit and provide the nonrefundable application fee in cash).

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