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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…

Research

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…

GENERAL: 800.ARBOR.10

FANNIE MAE®

Streamlined Rate Lock and Early Rate Lock

Arbor offers Streamlined Rate Lock (SRL) and Early Rate Lock (ERL) options that allow Borrowers to manage interest
rate risk with flexibility and speed to rate lock in mind. SRL and ERL are available on fixed-rate loans for the acquisition
or refinance of stabilized conventional multifamily properties. Some specialty asset classes and product types are
eligible, subject to pre-review by Fannie Mae.

Benefits
  • For rate locks with Fannie Mae’s trading desk and many other MBS investors, the breakage fee for failure to originate the loan is limited to the Good Faith Deposit.
  • Expanded delivery tolerance allows greater flexibility for rate locks.
Eligibility Existing, stabilized multifamily properties including Conventional, Seniors Housing, Student Housing, Manufactured Housing Communities, Green Rewards, and Green Building Certification Loans. Some may be subject to prereview.
Maximum Term of Rate Lock Up to 180 days.
Minimum Good Faith Deposit
  • Rate lock term of up to and including 90 days: 2% of commitment amount.
  • Rate lock term between 91 and 180 days: 3% of commitment amount.
Preliminary Underwriting Requirements
  • SRL – No prescribed set of preliminary underwriting requirements; the Lender makes the decision to rate lock based on its own determination of when it has sufficient preliminary underwriting information.
  • ERL – Refer to the Guide for list of requirements. Reduced preliminary underwriting requirements for Choice Refinance loans.
Breakage Fees For SRLs and ERLs executed with Fannie Mae’s trading desk, the breakage fee for any failure to deliver the mortgage loan will be limited to an amount equal to the minimum Good Faith Deposit. Many other MBS investors also limit the breakage fee to the minimum Good Faith Deposit.
Delivery Tolerance
  • +/- 5% for ERL and SRL.
  • For SRL, the Lender may increase the standard 5% Delivery Tolerance up to a 10% reduction in the delivered loan amount from the rate lock amount upon completion of final underwriting. For SRLs executed with Fannie Mae’s trading desk, if the loan amount reduction is between 5% and 10% of the rate lock amount, a penalty equal to the difference between 95% of the rate lock amount and the actual loan amount, multiplied by the Good Faith Deposit percentage, will be owed. Fannie Mae will not accept loans with third-party MBS Investors having a Delivery Tolerance in excess of 10% of the rate lock amount.

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