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…



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)


Request a Quote

Fill out a simple form and an expert loan originator will contact you shortly.