January 10, 2020
Small multifamily properties — with five to 50 units — represent nearly a third of the multifamily rental market, and much of this housing stock is affordable to low- and very low-income renters. Financing options for this segment have traditionally been more limited than conventional offerings, with fewer lenders and loan flexibility options for borrowers.
In October 2014, we announced the addition of the Small Balance Loan (SBL) line of business to our lending platform. This program targets loans between $1 million and $7.5 million and offers prepay flexibility to borrowers. Since the program’s inception, we’ve securitized over $24 billion on nearly 9,300 of these loans.
The SBL Prepayment Report leverages our own data and focuses on the voluntary prepayment activity of our SB-Deals over the past 12 months (from December 2018 through November 2019). We find that prepay speeds increased in the past 12 months due to loan seasoning and lower prepay penalties and expect prepayment activity to pick up going forward. Read the report.
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