Greystone has hired former Freddie Mac professional Jay Kirsch as a managing director to focus on production of Small Balance Loans (SBL) across the Freddie Mac and Fannie Mae platforms.
Kirsch spent the previous seven years at Freddie Mac, most recently serving as ‘asset management & operations client relationship manager’ for the SBL program. He previously held roles in underwriting, production, and portfolio surveillance.
Greystone has been particularly active with the Freddie Mac SBL product as its top producer, having completed more than $600 million in volume, helping the new product surpass $1 billion in overall volume.
“Jay’s expertise and industry knowledge in the small balance loan arena will be invaluable to Greystone as we continue to grow this platform,” said Rick Wolf, senior managing director and head of production for Greystone’s small loan operations. “As we head toward record-breaking production of small loans this year, we are continually looking to optimize our position as the go-to lender, and Jay will certainly help solidify that pursuit.”
Freddie Mac has been actively securitizing loans tied to the SBL program in the form of Freddie Mac SB Certificates.
Last month, as first reported in Real Estate Capital, $200m worth of multifamily, SBL loans originated by Greystone were bundled together and securitized through the program, marking the largest such securitization since Freddie Mac announced the initiative in October 2014.
The first was a $108m, 44-loan deal, FRESB 2015-SB1 Mortgage Trust, also originated by Greystone. A second, $109m, 42-loan securitization was backed by 42 loans originated by Arbor Commercial Mortgage.
Freddie Mac sells off the first loss position of the securities. On FRESB 2015-SB1, for example, Freddie Mac guaranteed the entire AAA position (90%), while Greystone sold off the Class B, X2 and R certificates to private investors.
Loan sizes, for acquisition or refinance, typically range between $1-$5m on properties with five or more units, with loan-to-values stretching up to 80% and a minimum 1:25x debt service coverage ratio (1.20x in top markets). Additional options include partial or full term interest only; 60-120 day rate locks; and Hybrid ARMs or fixed-rate balloon mortgage structures.
Kirsch will report to Wolf and will be co-based in Rockville, Maryland and Philadelphia, Pennsylvania.