Special Report: Spring 2023

Special Report: Spring 2023 The rental housing sector is well-insulated but not immune to market forces even as the economy edges into correction territory, Arbor Chairman and CEO Ivan Kaufman and Chandan Economics Founder Sam Chandan demonstrate in the findings of Arbor’s Special Report Spring 2023.   Key Findings: The sustainability of consumer financing and Read the full article…

Investment

Arbor’s Special Report Spring 2023

The rental housing sector is well-insulated but not immune to market forces even as the economy edges into correction territory, Arbor Chairman and CEO Ivan Kaufman and Chandan Economics Founder Sam Chandan demonstrate in the findings of Arbor’s Special Report Spring 2023.

Articles

Renting On Credit: New Platforms Modernize Monthly Multifamily Transactions

Until recently, full-scale optimization has skipped over the basic monthly rental payment transaction, with 78% of more than 100 million renters using paper checks. But now, two programs, backed by global leaders in financial services, are incentivizing tenants to pay the rent on credit, with perks like automatic credit reporting and points towards future purchases.

Articles

Top Markets for Renters Under 30

Renters 30 years of age and under, who now make up slightly more than one-quarter of the heads of households of rental units, are bolstering housing demand in markets known for their affordability and livability.

Press Releases

Arbor Realty Trust, Inc. Completes $315 Million Freddie Mac Q Series Securitization

UNIONDALE, NY, December 15, 2022 (GLOBE NEWSWIRE) – Arbor Realty Trust, Inc. (NYSE:ABR) (“Arbor,” “our,” or “we”) today announced the completion of an approximately $315 million loan securitization through Freddie Mac’s Q Series securitization program (the “Securitization”). Arbor’s affiliated entity Arbor Realty SR, Inc. originated the loans and was the loan seller for the Securitization. The Securitization is Arbor’s first Read the full article…

Articles

Five Benefits of Making Multifamily Investing Part of Your Portfolio

Multifamily investing involves the purchasing of properties with rentable housing units. In these types of investments, a group of investors often works together to mitigate costs, split profit shares, and reduce risk. Multifamily properties include apartment complexes, condo buildings, and townhouses, among other property types. When investing in multifamily properties is researched and undertaken prudently, it can generate steady and reliable income streams in all economic cycles.

Analysis

Arbor’s Top Articles of 2022: A Banner Year for Multifamily

After taking a pause during the peak of the COVID-19 pandemic, the U.S. multifamily market experienced a banner year in 2022. Throughout the year, Arbor continued to provide unique research and insights into our markets. Here’s a look at our top Arbor research articles from 2022, in case you missed them.

GENERAL: 800.ARBOR.10

FANNIE MAE DUS® Adjustable Rate Mortgage (ARM) 5-5

Arbor’s DUS ARM 5-5 product offers a 5-year variable rate financing option with an embedded cap and an option to extend for an additional 5-year term or convert to fixed rate.

BENEFITS Attractive low-cost financing; no minimum or maximum loan size; maximum interest rate is set at rate lock; optional extension to second 5-year term with minimal reunderwriting; convertible to a fixed-rate loan with minimal reunderwriting
ELIGIBILITY Existing, stabilized multifamily properties, including: Conventional, Multifamily Affordable Housing, Seniors Housing, Student Housing, and Manufactured Housing Communities; loans for acquisition or refinance
TERM Initial 5-year loan term; optional extension to a second 5-year term at maturity; rollover will retain the same guaranty and servicing fees as the original loan; rollover will not incur a prepayment premium
AMORTIZATION Up to 30 years
INTEREST RATE ADJUSTMENTS Adjusts based on changes to the underlying index and is equal to the index plus the margin
MAXIMUM LTV 65%
MINIMUM DSCR 1.00x at the maximum lifetime interest rate; mortgage loan amount shall not exceed that of a fixed rate loan with similar terms
RATE LOCK 30-day commitments
INDEX 30-day average SOFR
SUPPLEMENTAL FINANCING Supplemental loans are available
LOCKOUT PERIOD; PREPAYMENT AVAILABILITY No prepayment is allowed during the first year of either the initial or second 5-year variable rate terms; thereafter, prepayment is permitted with the payment of a 1% prepayment premium; no prepayment premium is due during the “open period” (typically the last 3 months) of either the initial or second 5-year variable rate terms
INTEREST RATE CAP Maximum monthly interest rate adjustment of 1% up or down; maximum lifetime interest rate to Borrower capped at 5%, plus the guaranty fee, plus the servicing fee
INTEREST RATE FLOOR The interest rate will never be less than the sum of the investor spread, the guaranty fee and the servicing fee
CONVERSION TO FIXED RATE Subject to the terms of the loan document, the variable rate mortgage loan may be converted to a fixed rate mortgage loan (with a 7- or 10-year term) on any rate change date beginning on the first day after the Lockout Period and ending on the first day of the third month prior to the Maturity Date

  • No prepayment penalty is charged at the time that the variable rate Mortgage loan converts to a fixed rate mortgage loan
  • Minimal reunderwriting; lender determines that the current net cash flow can support the new fixed rate terms
  • No increase in the loan amount; loan may be eligible for a Supplemental Loan
ACCRUAL Actual/360
RECOURSE Nonrecourse execution with standard carve-outs for “bad acts” such as fraud and bankruptcy
ESCROWS Replacement reserve, tax and insurance escrows are typically required
THIRD-PARTY REPORTS Standard third-party reports required, including Appraisal, Phase I Environmental Site Assessment and Property Condition Assessment
ASSUMPTION Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience

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