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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…


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.

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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…




The Freddie Mac Supplemental Mortgage offers an additional option in conjunction with a newly originated or seasoned conventional multifamily mortgage.

Loan Amount $1,000,000 minimum
Loan Term Seasoned – must be coterminous with original mortgage or may exceed original mortgage by up to 24 months
  • The Freddie Mac first mortgage must have been an Arbor transaction
  • At least 12 months must elapse between the closing of the first mortgage or the closing of the previous supplemental mortgage
  • The term of the supplemental mortgage must be at least three years
Acceptable Transactions
  • Fixed or floating regardless of the rate structure on the preexisting loan
  • Supplemental loans are allowed on conventional deals, but restricted to DSCR of 1.25 and LTV of 80% for acquisitions and DSCR of 1.30 and LTV of 75% for cash-out refinances; subject to Freddie Mac credit posture at time of application
  • Origination of a supplemental mortgage behind a securitized mortgage will trigger collection of any deferred reserves for that first mortgage
  • Real estate tax reserve, even if not required for the first mortgage
  • A new title insurance policy is required
  • No new survey is required, provided the title meets certain requirements
  • A new third-party appraisal report is required; an environmental database review is required; a new engineering report may be required, as determined by Freddie Mac
  • Unlimited (subject to all terms and conditions)
  • Less than five years left on term of first, the supplemental loan sizing is subject to additional exit risk analysis
Minimum DSCR 1.25 for acquisition, 1.30 for cash-out refinance
Maximum LTV Initial LTV unless otherwise noted
Eligible Borrower Original borrower or lender-approved transferee
Prepayment Yield maintenance
Assumable Subject to approval and 1% fee (nonrecourse loans only)
Application Fees $12,500
Origination Fee Par pricing not available


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