Fannie Mae Streamlined Rate Lock

Arranging the financing for a multifamily or healthcare property is a critical piece of a successful transaction, but the process can be complex. You can count on the highly knowledgeable professionals at LSG Lending Advisors to be your advocates every step of the way. Whether you are seeking a loan for a purchase, acquisition, new construction, refinance or rehabilitation, we have the expertise to ensure that the lending process goes smoothly and closes in a timely manner. Because every client has their own unique business needs and challenges, we take pride in creating custom made financing solutions for every client.

  • Over 7 years multifamily property loan underwriting experience.
  • Expert knowledge of financial terms and principles.
  • Highly experienced at guiding clients through complex transactions.
  • In depth analysis of current operating statements and projected financials.
  • Specialists in evaluating third party reports, including appraisals, environmental documents, market studies and project capital needs assessments.
  • Loan review documentation.
  • Tailor fit financing solutions for every client.

You can depend on LSG Lending Advisors to help you adhere to all FHA/HUD MAP/LEAN lending guidelines and we also have access to some of the best FHA/HUD approved lenders in the marketplace. Contact us today to learn more about how we have helped so many clients become successful multifamily or healthcare property investors.

The benefits of the Fannie Mae Streamlined Rate Lock program are that it reduces the loan origination breakage fee that went toward the good faith deposit. 

Existing, stabilized multifamily properties that are eligible, subject to pre-review are:

  • Conventional,
  • Seniors Housing, 
  • Student Housing, 
  • Manufactured Housing Communities, 
  • Green Rewards, or 
  • Green Building Certification Loans. 

The minimum good faith deposit is 2% of the commitment amount for a rate lock up to 90 days, and 3% of the commitment amount for rate locks between 91-180 days.

Term Sheet for Fannie Mae Streamlined Rate Lock

Maximum Term
of Rate Lock
Up to 180 days.
Minimum Good
Faith Deposit
  • Rate lock term of up to and including 90 days: 2% of commitment amount.
  • Rate lock term between 91 and 180 days: 3% of commitment amount.
Preliminary
Underwriting
Requirements
No prescribed set of preliminary underwriting requirements. The lender makes the decision to rate lock based on its own determination of when it has sufficient preliminary underwriting information.
Breakage Fees For SRLs executed with Fannie Mae's trading desk, the breakage fee for any failure to deliver the mortgage loan will be limited to an amount equal to the minimum good faith deposit. Many other MBS investors also limit the breakage fee to the minimum good faith deposit. Lenders should check with individual investors as to their breakage policy.
Delivery Tolerance

+/- 5%. The lender may increase the standard 5% delivery tolerance up to a 10% reduction in the delivered loan amount from the rate lock amount upon completion of final underwriting.

For SRLs executed with Fannie Mae's trading desk, if the loan amount reduction is between 5% and 10% of the rate lock amount, a penalty equal to the difference between 95% of the rate locked amount and the actual loan amount, multiplied by the good faith deposit percentage, will be owed.

Lenders should check with individual MBS investors as to their policy on loan amount reductions from the rate locked amount, but should note that Fannie Mae will not accept loans with third-party MBS Investors having a delivery tolerance in excess of 10% of the rate lock amount.

 

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