Nashwa Moussa Discusses Market-Leading Changes to the Freddie Mac Revolving Credit Facility
November 28, 2012
Today, I am pleased to announce market-leading changes to our Revolving Credit Facility that provides a highly competitive vehicle for eligible borrowers to finance or refinance properties that are undergoing rehabilitation, are non-stabilized, or that are currently being repositioned for the market. We’ve clarified that there are no minimum occupancy requirements, increased the maximum LTV requirement, and lowered the minimum DCR requirement for our facility.
The Revolving Credit Facility is a $100 million minimum secured line of credit that enables our borrowers to move assets in and out of the facility while adhering to a defined set of credit parameters. The facility is designed to provide a path to permanent financing for properties, once stabilized and fully leased, through our Capital Markets ExecutionSM (CME) program.
The product parameters for our Revolving Credit Facility include:
- Maximum LTV: 75%, minimum DCR: 1.45x (for standard Multifamily products)
- 5-year, full-term interest-only plus a 1-year extension
- Floating rate
- For acquisitions or refinances
- Additional fees will apply for each asset after 2 years of seasoning
- Non-assumable (at the facility or property level)
- Annual NOI and value assessment of all assets within the facility
- Active borrowers with a regional and/or national presence, with high net worth and liquidity relative to the facility
- All assets in the facility will be cross-collateralized and cross defaulted.
Eligible properties include standard Multifamily properties (except for cooperatives), seniors housing, and student housing that are secured by first lien mortgages only. The security instruments for individual properties must also be cross-collateralized and cross-defaulted, unless prohibited under applicable law.
We are hosting a webinar to provide you with an overview of our Revolving Credit Facility and a venue to answer any of your questions. Please be sure to register by clicking on the link below.
|Thursday, December 13||4:00 p.m.||Revolving Credit Facility Webinar registration|
We have also updated our Conventional Structured Finance Transactions term sheet on our website and we encourage you to download the most recent version to ensure you are sharing our current parameters with your borrowers.
If you have any questions about our Revolving Credit Facility and how it may apply to your individual transactions, please feel free to contact me at (703) 714-3051 or your Freddie Mac producer.