Structured Pool Transaction

POOL SIZE

Generally, $400 million or above but smaller UPBs will be considered.

ELIGIBLE PRODUCTS

Most product types currently offered by Freddie Mac (e.g., conventional, targeted affordable, seniors housing, student housing, manufactured housing communities).

TERMS

Up to 30 years fixed rate, up to 10 years floating rate, or a mix of both.

INDEX

• Fixed-rate: U.S. Treasury Securities.
• Floating-rate: 30-day Average SOFR Index.

LOCK OPTIONS

Early rate-lock option available for varying durations, typically ranging from 60 to 120 days until Freddie Mac purchase. Index Lock and Standard Delivery are also available.

SUPPLEMENTAL LOANS

Available subject to requirements specified in Freddie Mac’s underwriting guidelines. Additional loan-level or aggregate loan-to-value (LTV), debt service coverage ratio (DSCR) and net operating income tests may be required.

RECOURSE REQUIREMENTS

Loans are non-recourse except for standard carve-out provisions.

RESERVE ESCROWS    

Tax, insurance and replacement reserves are generally required, subject to standard Freddie Mac underwriting criteria.

PREPAYMENT PROVISIONS

Variety of prepayment options available.

INTEREST-ONLY PERIODS

Full- or partial-term interest-only available.

CROSS-COLLATERALIZATION

Choice of crossed or uncrossed loans.

ASSUMPTIONS

Available for uncrossed pools (fixed- and floating-rate). Assumptions on a crossed pool may be permitted on a case-by-case basis.

RELEASE FROM CROSS-COLLATERALIZATION

Flexible release options available. May be subject to pool level LTV/DSCR test and premium payment, depending on deal structure.

JOINT UNDERWRITING PROCESS

Large transactions may be underwritten quicker with use of the Joint Underwriting Process.

 

This sheet sets out the general guidelines of a loan program and is designed solely as an aid to prospective borrowers and other clients. It does not represent or imply a contract or a commitment to lend funds. A commitment to lend funds may only be made by a written letter issued by NewPoint to a prospective borrower. This term sheet is subject to change at any time without notice at the sole discretion of NewPoint Real Estate Capital LLC.