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.

Articles

What Is Driving Lifestyle Renter Demand?

Lifestyle renters — those who have the means to own but prefer to rent or are willing to pay more for apartments with amenities — have become a key driver of rental demand in single-family rental homes, build-to-rent communities, and other types of high-quality multifamily housing. With this small yet influential demographic growing, our research teams examine and explain the factors driving lifestyle renter demand.

Articles

Build-to-Rent Well-Positioned to Fill Housing Market Gap

With nearly one-fifth of multifamily properties now over 65 years old, it’s time to consider solutions for rejuvenating the rental housing stock in the U.S. While building rehabs are a tried-and-true solution, build-to-rent (BTR) is an alternative that is well-positioned to expand as Americans increasingly favor renting over homeownership.

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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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