Structured Pool Transaction
Generally, $400 million or above but smaller UPBs will be considered.
Most product types currently offered by Freddie Mac (e.g., conventional, targeted affordable, seniors housing, student housing, manufactured housing communities).
Up to 30 years fixed rate, up to 10 years floating rate, or a mix of both.
- Fixed-rate: U.S. Treasury Securities.
- Floating-rate: 30-day Average SOFR Index.
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.
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.
Loans are non-recourse except for standard carve-out provisions.
Tax, insurance and replacement reserves are generally required, subject to standard Freddie Mac underwriting criteria.
Variety of prepayment options available.
Full- or partial-term interest-only available.
Choice of crossed or uncrossed loans.
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.