Freddie Mac Conventional Structured Finance
Freddie Mac offers three Conventional Structured Finance products: Revolving Credit Facility, Multi-Asset Flow Facility and Multi-Asset Crossed Facility. If you're an active investor in the multifamily sector looking to lock credit terms and/or interest rates prior to identifying properties to be purchased, or if you want to take advantage of better loan terms by pooling together similar assets, a Freddie Mac structured facility product can be custom-built to meet those needs. Freddie Mac has a Conventional Structured Finance team dedicated to tailoring solutions for you.
Key Benefits
- Our structured facility products can be paired up with many of our existing Conventional Mortgage offerings to create a custom-built execution based on your current investment strategy.
- With built-in pricing and pre-negotiated loan documents, Freddie Mac structured facility products are one of the most efficient forms of execution for active multifamily borrowers.
At-a-Glance Comparison
| Product Summary | Revolving Credit Facility | Multi-Asset Flow Facility | Multi-Asset Crossed Facility |
|---|---|---|---|
| Product Description | Secured line-of-credit. Borrower can move assets in and out of the facility while adhering to the defined facility-level parameters | Borrower fills the facility with individual loans at defined credit parameters per the products selected, over a 12- to 24-month period | Immediate funding for acquisition or refinance of portfolio of assets |
| Type of Funding | Continuous funding as assets are moved in and out of the facility | Funding takes place over 12-24 months as the mortgages are originated | Funding is shortly after closing |
| Collateral | First lien mortgages on real estate assets (conventional multifamily, seniors housing and/or student housing) | First lien mortgages on real estate assets (conventional multifamily, seniors housing, student housing), acquisition rehabilitation/ upgrade, acquisition or refinance | First lien mortgages on real estate assets (conventional multifamily, seniors housing, student housing), acquisition rehabilitation/upgrade, acquisition or refinance |
| Minimum Pool / Loan Size | $100 million / $10 million | $100 million / $10 million | $100 million / $10 million |
| Minimum DCR / Maximum LTV | Determined on a deal-by-deal basis | Per defined parameters of product selected | Determined on a deal-by-deal basis |
| Fixed or Floating | Floating facility with ability to fix a portion | Both available | Both available |
| Cross-collateralization | Under one or more notes, assets will be cross-collateralized and cross-defaulted | Individual loans will be non-crossed (noncoterminous) but will consider a crossed feature on an exception basis (coterminous) | Loans will be cross-collateralized/defaulted (coterminous). |
| Assumptions | Non-assumable (facility and mortgage level) | Underlying mortgages assumable; facility not assumable | Underlying mortgages assumable; facility not assumable |
| Other Features | 5- or 7-year term Subject to periodic mark-to-market |
Substitutions, assumptions and supplemental loan features may be available depending upon combination of products selected | Substitutions, assumptions and supplemental loan features may be available depending upon combination of products selected |
| Annual Valuation | Applicable | May be applicable if crossed | May be applicable depending on negotiated terms |
| Pricing | Floating, full term IO over the 1-month or 3-month Freddie Mac Reference Bills® or LIBOR – no interest rate cap or hedge requirements | Fixed-rate, floating-rate, capped ARMs, acquisition rehabilitation, acquisition upgrade, acquisition, refinance, extended ERL, or standard delivery | Floating-rate, or a combination of fixed- and floating-rate |
| Fees | Transaction fee, mortgage review fee, collateral addition fee, substitution/release fee, minimum usage fee, unused facility fee, termination fee, legal fee | Transaction fee, mortgage review fee, collateral addition fee, substitution/ assumption/release fee, legal fee | Transaction fee, mortgage review fee, collateral addition fee, substitution/ assumption/release fee, legal fee |
Contact Us
- Download and print Freddie Mac's contact information
PDF Version
- Download the Conventional Structured Finance term sheet.
The information in this document is not a replacement or substitute for information found in the Freddie Mac Multifamily Seller/Servicer Guide. Terms set forth herein are subject to change without notice.