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Ingrid Schweitzer, Director of Production & Sales, Southeast Region, discusses the latest improvements to Fast Track Early Rate-Lock.
Hi. I’m Ingrid Schweitzer, Regional Director of Production & Sales in the Southeast region here at Freddie Mac. I’m chatting with you today about the latest improvements we’ve made to our Fast Track Early Rate-Lock financing option, and how you can take advantage of rate-locking within hours, not days.
Fast Track ERL provides borrowers the opportunity to rate-lock the full coupon, establish the mortgage amount, and set all key provisions upfront with limited documentation.
Executing a Fast Track ERL is very similar to locking a rate with an insurance company. Borrowers have the potential to lock the loan coupon within hours of signing an application. They will not incur exit fees beyond the 2 percent good faith deposit. And, we will provide them with a full refund of the good faith deposit, less application fee, if we do not commit in accordance with the application.
We initially introduced this rate-lock option back in September 2013 but since that time you have provided very valuable feedback on how we could improve it…and we listened.
We expanded the eligibility parameters and made additional enhancements, making this option more competitive and accessible to more of your borrowers by:
- Increasing the eligible maximum loan amount from 50 million to 75 million dollars
- Adding acquisitions as an eligible loan type, and
- Eliminating the requirement that the loan must be 5% less than our LTV and 0.05 higher than our DCR parameters
We’ve also made qualifying simple and easy. Here are a few quick highlights:
- All loan assets must be located in a Tier 5 or better market.
- Must be a fixed rate or floating rate conventional cash mortgage which includes student and seniors housing, and
- Must also pass the Freddie Mac Refinance Test. Eligible Borrowers are Freddie Mac customers who have executed a Freddie Mac CME loan in the last 2 years
If you wish to execute a Fast Track ERL, contact your Freddie Mac producer or upload the appropriate Loan Submission package, including the Loan Submission Template to DMS. After Freddie Mac confirms eligibility and issues a quote, you will complete, execute, and upload the Rate Lock agreement to our document management system or DMS. You’re now ready to rate lock; please note that the agreement is valid for three days.
So, if your borrower wants to eliminate coupon risk, lock in what continue to be historically low rates, limit your exit fee to just your 2 percent Good Faith Deposit, streamline documentation and do it in a matter of hours… contact your regional Freddie Mac producer today.
Multifamily Legal FYI
Legal FYI helps simplify the legalese in subjects ranging from recycled borrowers, Reverse 1031 Exchanges and to other topics you encounter throughout the quote and underwriting process. Read the latest issue today created by our Legal department.