Capital Markets ExecutionSM
Offers a fixed-rate product at our lowest price that is ultimately securitized
- Offers additional financing solutions traditionally met by a portfolio execution.
- In most cases, CME provides a more streamlined, yet still flexible, path to funding and offers more competitive pricing than a typical portfolio execution.
- With increased flexibility options, you can choose from a variety of options to suit your loan characteristics, and only pay for what you need.
|Financing Type Eligible for Securitization||Multifamily fixed-rate mortgages, purpose-built student housing, seniors housing, conventional structured finance pools, cooperative housing, Section 8 HAP, and Targeted Affordable Housing cash mortgages|
|Loan Size||$5 to $100 million (Loans as low as $3.5 million will be considered in certain strong markets)|
|Loan Terms||5-30 years|
|Loan-to-Value Ratio and Debt Coverage Ratio||For fixed-rate mortgage, see LTV/DCR chart below; all other mortgages, refer to individual term sheet|
|Maximum Amortization||30 years|
|Amortization Calculations||Actual/360 standard; 30/360 available|
|Lockout Period||2 years|
|Prepayment Provisions||Yield maintenance until securitized followed by 2-year lockout; defeasance thereafter. No penalty for final 90 days.
|Tax & Insurance Escrow||Required|
|Replacement Reserve Deposit||Required|
|Recourse Requirements||Non-recourse except for carve outs|
|Supplemental Loan Availability||Yes, subject to requirements specified in the CME Security Instrument|
|Premium Availability||Buyups permitted for up to 1% of loan amount|
|Application Fee||Greater of $2,000 or 0.1% of loan amount|
Loan-to-Value Ratio and Amortizing Debt Coverage Ratio
|Base Conventional LTV and DCR||Fixed-Rate Mortgage|
|Acquisition and No Cash-Out Refinance|
|> 7 Year Term||80% / 1.25x||80% / 1.25x||65% / 1.35x|
|< 7 Year Term||70% / 1.30x||Same as IO||60% / 1.40x|
|Supplemental Loan1 or Cash-Out Refinance|
|> 7 Year Term||75% / 1.30x||75% / 1.30x||65% / 1.40x|
|< 7 Year Term||65% / 1.35x||Same as IO||60% / 1.45x|
1Must have greater than 3 years remaining on first mortgage; No Supplemental allowed if less than 3 years remaining on first; if less than 5 years remains on first, add 5 bps to DCR
2For partial term Interest-Only loans, there must be a minimum amortization period of 5 years for greater than 5-year loan terms and 4 years for a 5-year loan term.
- Download and print Freddie Mac's contact information
- Download the Capital Markets Execution 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.