{"id":1004108715,"date":"2014-12-03T10:01:34","date_gmt":"2014-12-03T18:01:34","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004108715"},"modified":"2022-12-08T10:23:04","modified_gmt":"2022-12-08T18:23:04","slug":"freddie-to-do-bigger-business-in-small-loan-space","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/freddie-to-do-bigger-business-in-small-loan-space\/","title":{"rendered":"Freddie to Do Bigger Business in Small-Loan Space"},"content":{"rendered":"

By Drew McCreery, Technical Director, Agency Services,\u00a0Partner Engineering and Science, Inc.\"Drew<\/a><\/em><\/p>\n

For multi-family lenders, small loans are big business.\u00a0Small loans are estimated to make up almost 30 percent of the multi-family market. In an attempt to become more competitively involved in this space, Freddie Mac last month launched its Small Balance Loan (SBL) Program.\u00a0The program marks the organization\u2019s entrance into what they\u2019ve called an \u201cunderserved\u201d market, and mirrors Fannie Mae\u2019s increased focus on SBLs in its 2.0 guidelines to become effective by the end of the year.<\/p>\n

Freddie Mac will use the SBL program to further support affordable housing by providing a platform to purchase and securitize small multi-family loans. The program requires originating seller\/servicers to purchase the B-pieces secured by their underlying loan, which in turn can be sold to other investors. To promote liquidity, Freddie Mac has simplified some underwriting and due diligence requirements that will facilitate more competitive pricing and streamlined deal cycles. Loans approved through the program are subject a number of conditions, including:<\/p>\n