Aging Baby Boomers Reshape the Housing Market

While the 2008 financial crisis prompted a cyclical shift in U.S. housing — impacting everything from home prices to who can qualify for a mortgage — an equally impactful demographic change was just taking shape. The unprecedented wave of Baby Boomers that began retiring would disrupt the balance of the housing market.


Secondary and Tertiary Markets Gain Ground on Primary Cities

As secondary and tertiary markets continue to gain parity with larger primary cities around the nation, they offer investors a significant potential for return on investment, even as the U.S. and global economic landscapes face notable headwinds.


Small Multifamily Investment Snapshot — Q4 2022

The small multifamily sub-sector ended 2022 on a high note with originations falling just behind 2021’s peak. As economic storm clouds continue circling, small multifamily appears fortified from any reverberations that may result.

Press Releases

Arbor Realty Trust Reacts to Ningi Research Report

UNIONDALE, N.Y., March 14, 2023  (GLOBE NEWSWIRE) – Arbor Realty Trust (NYSE: ABR), announced today that the Company is in receipt of the purported “research” report that was published earlier today by Ningi Research, a short seller of Arbor stock. The report lacks merit and contains numerous inaccuracies, misstatements, and otherwise misleading allegations. This false Read the full article…


Arbor’s Leah Fisher Joins Global Sustainability Panel at InnovateESG

Arbor Senior Vice President, Special Projects, Governance and Risk, Leah Fisher recently spoke on a thought-provoking panel discussion at InnovateESG 2023, a conference focused on environmental, social, and governance missions, hosted by NYU Stern’s Chen Institute for Global Real Estate Finance.


Single-Family Rental Investment Snapshot — Q4 2022

SFR will maintain exposure to the cyclical disruption brought on by the housing market’s softness and rising interest rates, even though its structural growth outlook remains positive and unchanged.



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
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 5% if positive net operating income (NOI) growth is demonstrated
  • No breakage fee for decreases in the loan amount that are within 5% 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
  • Targeted Affordable Housing
How Early Rate Lock Works Preliminary Quote

  • Arbor submits the Loan Submission Template and requests quote
  • Freddie Mac Production reviews the submission and obtains the pricing quote
  • Arbor reviews and accepts quote and requests early rate lock

Preliminary Underwriting Package
Arbor provides documents for ERL execution detailed in the Freddie Mac 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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