Freddie Mac Seasoned Loan Pool Credit Enhancement Loans

The Freddie Mac Seasoned Loan Pool Credit Enhancement program provides flexible and cost-effective financing options for small financial institutions looking to achieve a loss sharing arrangement with Freddie Mac. This program provides loss sharing options to small financial institutions so they can continue to grow and support affordable housing. Freddie Mac will underwrite the entire pool of seasoned loans and then offer credit protection for a senior position in the loan pool.

Freddie Mac Seasoned Loan Pool Credit Enhancement Loan Highlights

Eligible Customer: Must be either a small financial institution or community bank that has less than $10 billion in assets

Pool Size: $100 million or greater UPB

Collateral: Pool must contain small balance multifamily loans and loans secured by apartment buildings with 9% LIHTC. These loans must have been originated at least one year before the transaction closing date

Structure: Freddie Mac offers flexible structure by customizing the level of credit support for each pool

First-Loss: Customer must maintain a first-loss position in the loan pool

Freddie Mac Guarantee: Through this program, Freddie Mac enters into an agreement in which they will accept responsibility for a senior tranche of credit risk of a particular loan pool. While loans must remain on the customers balance sheet, the credit risk is shared between the customer and Freddie Mac

LTV:

• Loans below $1,500,000 have allowance of 60% LTV
• Loans above $1,500,000 have allowance of 80% LTV

DSCR:

• Loans below $1,500,000 must meet DSCR of 1.50x
• Loans above $1,500,000 must meet DSCR of 1.20x

Term: Open to any loan term

Amortization: 30 years