Mortgage Lending

Fannie Mae and Freddie Mac, which are government-backed agencies, play an integral role in the American housing system. They buy mortgage loans from lenders, such as banks, package those loans into mortgage-backed securities, and then sell them to investors. Because Fannie Mae and Freddie Mac take on much of the risk, investors generally consider those securities to be safe. These

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To sell a seller carry-back mortgage, the note holder transfers the right to collect future installment payments to a note investor in exchange for an upfront lump sum. The process has 5 stages: gather documentation, get the note valued, request quotes from multiple buyers, choose a full or partial sale, and close the assignment. A seller carry-back note typically sells

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One of the most significant benefits of being a CMBS lender is having the money that is loaned to the real estate investors replenished as soon as the bonds are sold to investors on the open market. Because these loans are not kept in the lender’s portfolio, the money paid for the bonds heads back through the security to replace

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DSCR, or Debt Service Coverage Ratio, is a calculation used typically in commercial lending transactions involving real estate. It measures a property’s cash flow compared to its current debt obligations. The evaluation of a company’s DSCR gives the lender a general idea on whether a business can pay a loan back on time and with interest. The higher the DSCR

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The U.S. Treasury Yield is calculated by the U.S. Department of the Treasury from the daily yield curve. It is also referred to as the Treasury Yield Curve Rate, Constant Maturity Treasury Rate, or CMTs. These rates are essentially the return an investor would receive from the purchase of a U.S. government debt obligation, such as a bill, note, or

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