NCHMA Spring Meeting 1.5 Exploring Fannie Mae & Freddie Mac Executions & Underwriting

Transcription

1 NCHMA Spring Meeting 1.5 Exploring Fannie Mae & Freddie Mac Executions & Underwriting April 19, Fannie Mae. Trademarks of Fannie Mae Fannie Mae. Trademarks of Fannie Mae. 1

2 Fannie Mae is in every market, every day Fannie Mae MAH pursues business with recorded affordability restrictions Very Low Income <=50%AMI Low Income <=60% AMI Mixed Income Fannie Mae offers the most flexibility with our single-asset security Fixed and Floating Rate Options No minimum or maximum loan size and terms 5-30 yrs. Taxable and Tax-Exempt Solutions Fannie Mae offers the fastest and most reliable execution for all financing types Acquisitions and Refinance Moderate and Substantial Rehab Preservation 2016 Fannie Mae. Trademarks of Fannie Mae. 2

3 Fannie Mae Multifamily Affordable Experienced and Dedicated Affordable Team DUS Lender Network Delivers Excellent Service Risk Sharing Model Aligns Interests Competitive Pricing and Terms Win Business Single MBS Structure Delivers Unparalleled Flexibility 2016 Fannie Mae. Trademarks of Fannie Mae. 3

4 Millions Fannie Mae is Committed to Affordable Multifamily MAH Production $4,000 $3,000 $2,300 $3,800 $2,300 $2,600 $,3, $2, $1, $- In Billions Total MF $24 $34 $29 $29 $ Fannie Mae. Trademarks of Fannie Mae 4

5 Choose the Fannie Mae Tax Exempt Bond Financing Solution that Works for You! Fannie Mae offers very competitive pricing with the most flexibility, as well as the fastest and most reliable execution Fannie Mae. Trademarks of Fannie Mae 5

6 MBS as Tax Exempt Bond Collateral (M.TEB) Obtain a lower interest rate and significant savings over the life of the loan when combining the ease of our MBS execution with the benefit of tax exempt bonds. Benefits Close faster with our unique delegated model Available for fixed-rate and variable-rate bonds bps better pricing than traditional bond credit enhancement Interest-only is available Fannie Mae guaranteed direct pass through of principal and interest is more attractive to bond buyers No minimum or maximum loan size Competitive Advantage Loan terms up to 30 years Declining prepayment options OR yield maintenance LTV s up to 90% Available for taxable as well as tax-exempt bonds No master or special servicer with Life-of-loan servicing Delegated underwriting model provides certainty of execution Wide investor base offering attractive pricing due to the appeal of the MBS The industry s most experienced Affordable Housing experts 2016 Fannie Mae. Trademarks of Fannie Mae 6

7 Reduced Occupancy Affordable Rehab (ROAR) Immediate, permanent financing for major rehab allowing tenant displacement; no separate construction loan. Benefits Interest-only payments during the renovation period Proceeds are fully funded at closing Up to 90% of as stabilized LTV during the rehab period During rehab: Minimum occupancy of 50% Minimum DSCR of 1.0x (interest-only basis) Rehab costs up to $120,000 per unit Increased leverage opportunities when underwritten to as-improved rents. Competitive Advantage One loan solution for construction and permanent financing Initial cash execution and our single asset security allow for flexible loan terms and prepayment structures that can be tailored for any transaction Competitive pricing and terms Experienced, dedicated affordable team partners with you to provide expert solutions 2016 Fannie Mae. Trademarks of Fannie Mae 7

8 Reduced Occupancy Affordable Rehab (ROAR) Before Loan Closing During Rehab Period At Stabilization ASSET 90% Occupancy 50% Occupancy months 90% Occupancy LOAN Cash B/S Immediate Funding MBS Securitized Terms: Rehab Escrow; Holdback (or LOC) Interest Only 1.00x (IO); 0.75x (amortizing) Amortization x 2016 Fannie Mae. Trademarks of Fannie Mae 8

9 Reduced Occupancy Affordable Rehab (ROAR) Key Terms Eligible Properties Eligible Sponsors LTV Term Amortization Rehab Period Minimum Loan Size Loan Disbursement Terms Stabilized MAH; rehab range typically $40K-$120K/unit Strong sponsors with demonstrated tenant-in-place rehab track record Up to 90% as stabilized 5-30 years Up to 35 years months $5 million Fully funded at closing; rehab funds escrowed by Lender 2016 Fannie Mae. Trademarks of Fannie Mae 9

10 Maria Barker Customer Account Manager Multifamily Affordable Housing Visit the new Multifamily website today! Fannie Mae. Trademarks of Fannie Mae. 10