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Freddie Mac

Supplemental

ELIGIBLE OPTIGO SELLER/SERVICERS
  • If the first loan has been securitized, the original Optigo Seller/Servicer for that first loan or currently servicing that first loan.
  • If the first loan has not been securitized, the Optigo Seller/Servicer currently servicing that first loan.
ELIGIBLE BORROWERS

Original first loan borrower or lender-approved transferee.

ELIGIBLE LOANS
  • Loans behind existing first loans.
    • Stabilized properties in good standing.
    • Purchased through the Conventional Cash Mortgage Purchase Program, the Targeted Affordable Housing Cash Mortgage Purchase Program and Conventional Structured Transactions
  • Prior loans (first loans and any prior supplemental loans in place) must have remaining terms of 3 years or more.
  • Minimum supplemental amount: $1 million.
TERMS

Coterminous with first loan. Must be at least 12 months after origination of the first loan or the most recent prior to the supplemental loan. Not available during the last 3 years of the first loan.

PREPAYMENT PROVISIONS

Structured as a yield maintenance loan.

RESERVE REQUIREMENTS

Origination of a supplemental loan may trigger collection of deferred reserves and escrows for that first loan. Deferred insurance escrows may be permitted under limited circumstances.

REFINANCE TEST

Based on the sum of the debt service and unpaid principal balance of the first loan and all existing and proposed supplemental loans.

SERVICING FEE

Calculation based on supplemental proceeds.

LOAN-TO-VALUE RATIOS AND AMORTIZING DEBT COVERAGE RATIOS
  • ≥ 3-Year & < 5-Year Term
    • Amortizing – 75% / 1.35%
    • Partial-Term IO – 75% / 1.35%
    • Full-Term IO – 65% / 1.45%
  • ≥ 5-Year-Term & < 7-Year Term
    • Amortizing – 75% / 1.25%
    • Partial-Term IO – 75% / 1.25%
    • Full-Term IO – 65% / 1.35%
  • ≥ 7-Year Term
    • Amortizing – 80% / 1.25%
    • Partial-Term IO – 80% / 1.25%
    • Full-Term IO – 70% / 1.35%

 

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.