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® 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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