Additional representations and guarantees from the Freddie Mac Multifamily Seller/Servicer Guide for credits sold freddie Mac under the Small Balance Loan Product. An index of the various optional provisions that can be defined in Schedule D of the bond or application for conventional cash mortgages in order to address some common problems. If you need the provisions specified in this index, please contact the relevant regional lawyer Freddie Mac Multifamily. Recourse loans are loans that offer the personal guarantee of the person who lends the money or the person (s) who is behind the company that lends the money. The remedy may benefit the borrower to the extent that, if he feels safe to put his personal name and personal fortune behind the loan, he can sometimes obtain better credit terms, but in most cases, a remedy is necessary when a borrower or a credit unit alone is not strong enough or if the property itself does not fall under a category that makes it conventional. Traditionally, for example, hard money loans are a total remedy. One way or another, the remedy provides greater security for the company that lends the money. For multi-family loans, most bank loans, bridge loans and construction loans are fully utilized, while Fannie Mae, Freddie Mac, HUD/FHA Multifamily and CMBS loans are generally not used. The Optigo® small balance loan (SBL) initiative was first announced in October 2014 and extended to the company`s ongoing efforts to better serve less populated markets and provide additional liquidity to small residential buildings.
Freddie Mac has a specialized network of Optigo vendors and Optigo SBL lenders who have extensive experience in this market and purchase credit across the country. Q-002 certificates are guaranteed by Freddie Mac and are supported by 60 affordable multi-family mortgages underwritten by Impact Community Capital. Wells Fargo Securities, LLC is the sole structuring agent, Lead Manager and Bookrunner alone. The loans are from Wells Fargo Bank, National Association, Bank of America, N.A. and JPMorgan Chase Bank, National Association and are sold by Impact C.I.L., LLC. Freddie Mac guarantees three main classes and interest classes and one interest rate class only for securities issued by the FRESB 2020-SB78 Mortgage Trust. Freddie Mac also acts as a mortgage salesman and master service to the trust. In addition to the four categories of securities guaranteed by Freddie Mac, the Trust issues certificates consisting of Class B and Class R certificates not guaranteed by Freddie Mac and sold to private investors. Unlike recourse loans, non-refundable loans generally do not allow a lender to sue a borrower`s non-collateral assets in the event of a credit default. There are, however, a few exceptions; most non-recourse loan agreements include “Bad Boy Carve Outs” which provide that when a borrower engages in certain “bad boy” activities, the loan becomes a remedy.