12 – 19 – 12
The push to acquire more of Fannie Mae’s market share continues to heat up as local and regional banks have once again, sharpened their pencils on rate, structure and speed of execution. GSP is working with a regional bank that has recently reduced rates while simultaneously relaxed underwriting criteria to win more business away from the agencies. Full-leveraged 75% transactions start a 3.6% fixed for three years to 4.35% fixed for 10 years. All products are 30 due in 30 self-liquidating: there is no balloon risk. Prepayments are step-down but open the last 90 days of the fixed term. There is no prepayment once the loan rolls into the floater. Common sense underwriting expedites the process with closing routinely occurring within 40 days from receipt of an executed application. Transactions from $750,000 to $10,000,000 are considered in 10 western states with MSAs of 250,000 or more. Class C assets will be considered for strong sponsors.