Freddie Mac New York City Pilot

Freddie Mac is now offering a unique pilot for New York City borrowers designed to offer flexible prepayment options and a streamlined approval process. The NYC area is defined as including only the five boroughs of New York.

At-a-Glance

Eligible Loans	$12 million and under
Eligible Locations	New York City five boroughs only
Eligible Borrowers	Limited to borrowers that own 50 or more units
Eligible Seller/Servicers	Program Plus® Seller/Servicers authorized to conduct business in these locations (no geographic waivers will be permitted)
Supplemental Financing	Permitted under standard Freddie Mac guidelines for Supplemental Mortgages
Loan Term	5 to 30 years
Minimum Debt Coverage Ratio (DCR)	Acquisition Amortizing: 5 to < 7 yrs: 1.30x ≥ 7 and ≥ 10 yrs: 1.25x Full Term IO (IO DCR calculation): 1.55x Partial IO (up to 2 years IO): 5 to < 7 yrs: 1.30x ≥ 7 and ≥ 10 yrs: 1.25x	Refinance Amortizing: 5 to < 7 yrs: 1.30x (1.35x for cash-out refi) ≥ 7 & ≥ 10 yrs: 1.25x (1.30x for cash-out refi) Full Term IO (IO DCR calculation): 1.55x (1.60x for cash-out refi) Partial IO (up to 2 years IO): 5 to < 7 yrs: 1.30x (1.35x for cash-out refi) ≥ 7 & ≥ 10 yrs: 1.25x (1.30x for cash-out refi)
Maximum Loan-to-Value (LTV)	Amortizing: 5 to < 7 yrs: 70% ≥ 7 to < 10 yrs: 75% ≥ 10 yrs: 80% Full Term IO: < 7 yrs: 60% ≥ 7 yrs: 65% Partial IO: 5 to < 7 yrs: 60% w/ up to 2 years IO ≥ 7 to < 10 yrs: 75% w/ up to 2 years IO ≥ 10 yrs: 80% w/ up to 2 years IO	Amortizing: 5 to < 7 yrs: 65% ≥ 7 to < 10 yrs: 70% ≥ 10 yrs: 75% Full Term IO: < 7 yrs: 60% ≥ 7 yrs: 65% Partial IO: 5 to < 7 yrs: 60% w/ up to 2 years IO ≥ 7 to < 10 yrs: 70% w/ up to 2 years IO ≥ 10 yrs: 75% w/ up to 2 years IO
Early Rate-Lock (ERL)	Good faith deposit of 1% 90-day funding Standard breakage language
Pricing	Option to price with yield maintenance or step down prepayment options Step Downs: 5-year deal 5%, 4%, 3%, 2%, 1% 7-year deal 5%, 5%, 4%, 4%, 3%, 2%, 1% 10-year deal 5%, 5%, 5%, 5%, 5%, 5%, 4%, 3%, 2%, 1% or 5%, 5%, 4%, 4%, 3%, 3%, 2%, 2%, 1%, 1% No price adjustment based on loan size Premium pricing permitted Minimal price adjustment for loans with commercial income greater than 20% of effective gross income; no adjustment for loans with commercial income less than 20% Application fee costed into net spread
Underwriting	Underwriting to collections (actual rent roll, no vacancy or rent trending)
Recourse Requirements	Non-recourse except for standard carve-out provisions
Third-Party Reports	Engineering report (environmental report limited to database search) and full appraisal required
Property Inspections	Required
Transfers/Assumptions	Permitted as under normal Freddie Mac guidelines
Tax and Insurance Escrow	Required

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PDF Version

Download the New York City Pilot 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.