Now is the Time to Consider Agency Lending Placement

With 5 and 10-year United States Treasury rates recently hitting 52 week lows, now is a great time to consider adding Agency Lending Placement to your commercial product offerings.

CMBS Multifamily distress rates having been rising due to the current rate environment. Some of your multifamily projects with floating rates or re-price events could be experiencing considerable stress on cash flow. Stress testing for multifamily projects that originated 3-7 years ago probably only included a 3-4% rate increase.  With the significant action of the Fed in the last couple of years, those projects may be looking for permanent financing solutions with rate relief. Agency Lending Placement can provide that rate relief, while helping you manage your balance sheet and generate non-interest income for your bank.

Multifamily agency loans offer numerous benefits for real estate investors and developers engaged in the multifamily housing sector. These loans, backed by government-sponsored entities like Fannie Mae and Freddie Mac, provide stability and financial advantages.

Multifamily agency loans often come with non-recourse options, cash-out refinance options, life of loan interest only options and are assumable.  These features can be particularly valuable in the event of unforeseen challenges and market changes.

With recent rate pricing in the 5.50% range for a 10 year fixed rate loan that has 5 years’ of interest only payments, Agency Lending solutions could be a great opportunity to deepen your relationship with borrowers and create capacity for upcoming projects.

Agency Lending Placement is a great compliment to your current commercial loan products and can be fully implemented and available in just a couple of weeks. Reach out to your Bankers’ Bank Commercial Banker to learn how you can become a Referring Bank for Agency Lending.