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In this Issue
 Small Balance Multifamily Lending
Continues to Evolve
Near-Term Outlook for Homeownership is
Grim, Says Report
LEAN Pilot Program Streamlines 232/223(f)
Process
Small Balance Multifamily Lending Continues
to Evolve
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Peter Margolin
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As the landscape of small balance multifamily
lending continues to evolve, we have seen Fannie Mae provide
liquidity into a space vacated through the loss of major players like
IMPAC, LaSalle Bank and most recently IndyMac. Lending
nationwide, these three companies funded billions of loan dollars
annually. While a few new players have been added, the loan
volume of the replacement lenders is significantly lower that of the
ones that have been lost. Now, borrowers are looking to their
local banks and Fannie Mae through the 3Max® program to pick up the
slack.
The basics of the 3Max® Program are as follows:
- Loan Amounts - $500,000
to $3 million ($5 million in select markets)
- Loan Term - Up to 30
years
- Loan Amortization -
Up to 30 years
- Minimum DSCR - 1.20X
- Maximum LTV - 80%
(75% for five-year term)
- Recourse - All loans
recourse except in specific markets
- Interest Rates -
Fixed or ARMs available
- Prepayment Penalty -
yield maintenance or defeasance (Fixed declining available for
ARMS only)
Click
to read more
Peter Margolin
is a Director in Arbor's full-service Deerfield, IL office. He can be
reached at 847-597-7031 or at pmargolin@arbor.com.
Near-Term Outlook for Homeownership is Grim,
Says Report
The National Multi Housing Council's Washington Update outlined the
findings of the State of the
Nation's Housing 2008, the annual report by the Joint Center for Housing Studies of
Harvard University. The near-term outlook for homeownership, the
report concludes, is grim.
Among other findings, the report uncovers the following:
- A
larger-than-expected growth in renter households
- Worsening housing
affordability conditions
- Minorities and single-person
households will dominate new household formations in the coming
years.
According to the report, the national homeownership
rate peaked in 2004 and has since retreated below its 2003 level. In
contrast, there were 2 million new renter households created from
2004 to 2007. Exploring the rental housing sector, the report
finds that more than a quarter of rental households surveyed in 2005
had lived in their current apartment homes for five or more years,
and that more than 45 percent of long-term renters live alone. Among
renters who had moved into their apartments within the prior two
years, one in five were starting out as new households, two-thirds
came from other rentals and one in seven moved from units they owned.
In fact, just under a quarter of owners who relocated in 2003-2005
rented their next home.
Click
to read more
The full report, which the National Multi Housing
Council helps sponsor, is available at http://tinyurl.com/6oyot8.
LEAN Pilot Program Streamlines 232/223(f)
Process
Arbor now offers HUD's LEAN Program for Section
232/223(f) for Refinance and Acquisition of nursing homes and
assisted living facilities. This new pilot program can help borrowers
reduce processing time of healthcare loans to 60 days or less from
firm application to closing.
"This new program not only significantly
decreases FHA's processing time, but will also provide consistency
and efficiency in FHA's review, reducing the number of processing
steps from 57 to 16," said Wendy Stamnas, Chief FHA Underwriter.
"These changes make the 232/223(f) LEAN Program extremely
competitive in the market."
Click
to read more
For more information about the LEAN program, please
contact Wendy Stamnas, Chief FHA Underwriter, at 617-619-7313 or wstamnas@arbor.com.
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