About Chatter

Welcome to Chatter! We’re happy to be your source for multifamily news, research and insight. Bookmark us and be sure to sign up for our weekly newsletter to stay on top of all things financing and investment for the multifamily industry. We also invite you to follow us on Twitter. What is Chatter? So what Read the full article…


How Big is Small Cap Multifamily?

A closer look at the multifamily housing inventory in the United States and the size of the small cap investment opportunity.

Around the Web

Multifamily Forecast: Investors Moving to Secondary Markets

The apartment sector has remained the darling of the commercial real estate for the past six years. This doesn’t appear to be changing anytime soon, as 2016 is expected to set a new record for multifamily mortgage origination volume. While multifamily’s position as top dog remains uncontested, savvy investors are altering their strategy for sourcing Read the full article…


Fannie Mae® Hybrid Adjustable Rate Mortgage (ARM)

Arbor’s Hybrid ARM product offers a 30-year mortgage loan, comprised of an initial term where interest accrues at a
fixed-rate, after which it automatically converts to accrue interest at an adjustable-rate for the remaining term.

Loan Amount Up to $6 million nationwide
Loan Term 7-year fixed rate term, followed by a 23-year adjustable rate term; or 10-year fixed rate term, followed by a 20-year adjustable rate term
Amortization 30 years
Maximum LTV Up to 80%
Minimum DSCR 1.25x Actual Amortizing DSCR. The maximum loan amount must be determined by using a minimum 1.00x sufficient to cover a debt service constant that equals the sum of (i) the interest rate during the fixed rate term, plus (ii) 2.50%
Rate Lock 30- to 180-day commitments; Borrowers may lock a rate with the Streamlined Rate Lock option
Interest Rate Adjustments Starting in the adjustable-rate period, adjusts based on changes to the underlying index and is equal to the Index plus the Margin
Index During Adjustable-Rate Term 30-day Average SOFR
Margin During Adjustable-Rate Term 1.15%, plus the Guaranty Fee and the Servicing Fee in effect at Rate Lock
Prepayment Availability Flexible prepayment options available during the fixed-rate term, including yield maintenance and declining prepayment premium; no prepayment fees during the adjustable-rate period
Maximum Interest Rate During The Adjustable-Rate Term Starting with the conversion from the fixed interest rate to the adjustable interest rate and thereafter, maximum semi-annual interest rate adjustment of 1% up or down

Maximum lifetime interest rate to Borrower capped at 5% over the initial fixed rate

Lifetime Interest Rate Floor The interest rate will never be less than the Margin
Supplemental Financing Not available
Accrual 30/360 or Actual/360
Recourse Non-recourse 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 If underwriting to Small Mortgage Loans, then streamlined inspection and Environmental Screening using the ASTM E-1528-14 protocol, otherwise, standard third-party reports required, including Appraisal, Phase I Environmental Site Assessment, and Property Condition Assessment
Application Deposit $10,000; Covers estimated processing and legal fees
Assumption Loans are typically assumable, subject to review and approval of the new Borrower’s financial capacity and experience


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