Centerline Capital Group Executes Their First Index Lock
$13,304,000 Loan For LL Sams Historic Lofts in Waco, TX
— Among the first to complete new Freddie Mac Index Lock option—
New York, NY —January 30, 2014— Centerline Capital Group, a provider of real estate mortgage services for affordable and conventional multifamily housing, announced todayit was one of the first lenders to execute on a new Index Lock program offered by Freddie Mac.
The new Freddie Mac Index Lock structure mitigates interest rate volatility by allowing borrowers to lock the underlying Treasury, which is the most volatile part of the mortgage note, at any time, during quote or underwriting. It also reduces proceeds volatility, with less documentation and faster execution than the traditional lock process. “My borrower was able to lock the Treasury index at the time of Loan Application, which led to a 48 basis point Treasury yield savings than if he had locked the index at the time of Commitment,” explained Yogesh Joshi, Director with Centerline’s Los Angeles office.
The Index Lock structure is available to existing borrowers who have had a Capital Markets Execution (CME) loan purchased by Freddie Mac within the last 18 months. Parameters of the Index Lock include:
» Available upon receipt of a signed Application, not a commitment.
» Can be used for an Acquisition or Refinance, using a Freddie Mac CME execution.
» Borrower has 90-days to lock the remainder of the note rate or gross spread.
» Requires a Standard application fee (10bps) and a 2% good faith deposit.
» Loan sizes $50MM or less are eligible.
» Plus/minus 10% proceeds variance without triggering breakage. Proceeds greater than 110% of the Index Locked UPB will be locked at the current Treasury Index, creating a blended rate.
“In a rising interest rate environment, the ability for my loyal customers to secure their interest rate quickly is a competitive advantage I am pleased to offer,” Added Yoshi.
The Mortgage Banking Group at Centerline provides mortgage financing for conventionalmultifamily properties throughout the United States. Centerline is a FannieMae DUS lender, Freddie Mac seller-servicer, FHA-approved mortgageprovider, bridge and CMBS lender, and source for other forms of alternative capital.
About Centerline Capital Group
Centerline Capital Group, a real estate finance company, provides financing and investing for conventional and affordable multifamily housing throughout the United States. Centerline is organized around two business units: Mortgage Banking and Affordable Housing Debt. Under the Mortgage Banking and Affordable Housing Debt businesses, Centerline partners with developers, owners, and investors to provide them with capital to develop, acquire or redevelop their real estate assets. Centerline’s core debt products consist of Fannie Mae, Freddie Mac, or HUD/FHA financing. In addition, through several strategic alliances, Centerline offers various CMBS executions for multifamily and other commercial properties, bridge loans and select joint venture equity products. Today the firm’s lending platform manages and services more than $12.2 billion in loans, of which affordable housing makes up $3.1 billion. Founded in 1972, Centerline is headquartered in New York City, with 210 employees in 13 locations throughout the United States. To learn more about Centerline, visit www.centerline.com.