October 27, 2016, NEW YORK, NY– Capital One Multifamily Finance announced today that a Freddie Mac Small Balance Loan (SBL) securitization settled on September 27, consisting of 37 loans that the bank originated and delivered to Freddie Mac.
Freddie Mac’s SBL program offers a streamlined low-cost financing option for acquiring or refinancing multifamily properties with five residential units or more and for amounts between $1 million and $5 million. Freddie Mac introduced the program in 2014 as a way to meet the long-term debt capital needs of small rental property borrowers nationwide, increase liquidity in the small balance space, and provide stability in this somewhat underserved market.
“The securitization shows the depth of our commitment to both Freddie Mac’s Small Balance Loan product and to helping Freddie Mac ensure that there is adequate workforce housing,” said Elie Tannous, Senior Vice President at Capital One Multifamily Finance. “We have already begun to assemble assets for the next securitization and to devote additional resources to expanding this business.”
In addition to the SBL program, Capital One can offer its clients financing through Freddie Mac’s affordable, seniors, and conventional loans.
“We continue to build relationships with multifamily clients, based on our capacity to offer the right loan at the right time for each of their properties,” said Josh Bodin, a Senior Vice President with Capital One Multifamily Finance, who has been responsible for the day-to-day operations of the SBL program. “We are able to use the full range of Freddie Mac and Fannie Mae products to complement our balance sheet lending.”
Capital One Multifamily Finance is one of just 11 approved SBL Seller/Servicers in Freddie Mac’s SBL program and has been an approved SBL Seller/Servicer since late 2015.