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| Featured: Correspondent Life Insurance Company |
| Overview: | Fantini & Gorga acts as correspondent throughout New England a major national life insurance company that provides best-in-class pricing for good real estate assets in both primary and secondary markets. Lincoln is competitive with terms from 5 to 10 years or more, out to 35 years. |
| Loan Amount: | $5,000,000 - $175,000,000. Most loans are in the $5,000,000 - $50,000,000 range. Portfolios can exceed $175,000,000 |
| Terms: | 5 - 35 years |
| Amortization: | Up to 35 years. Interest-only available on low loan-to-value (LTV) transactions |
| Property Profile: | Multifamily (preferred 30+ units), self-storage, medical office, industrial, multi-tenant retail, office, single tenant retail (credit rated BBB or better with 15+ years lease remaining) |
| Underwriting Criteria: | Up to 75% LTV, but most competitive for loans of less than 65% LTV. 1.25x DSC with 25-year amortization; 1.30 for 30-year amortization, 1.15 for 15-year amortization |
| Interest Rates: | Best-in-class pricing; fixed rates based on Treasury, on 30/360 basis. Up to a nine month forward is available for higher pricing |
| Rate Lock: | Rate is locked at signing of application and held for 90 days |
| Prepayment: | Normally locked 3 years, then Yield Maintenance with 90 days open at par. More flexible structures available depending on borrower’s objectives |
| Process: | Revised short application process to expediate rate lock. Committee approval typically within 10 business days, and closing within 60 days or less |
| Lender Fees/Costs: | $10 bps lender fee, with a minimum of $7,500. Standard third parties and legal costs. There is a 1% refundable good faith deposit at application and rate lock, an additional 1% refundable deposit at commitment |
| Recourse: | Non-recourse with standard carveouts to the borrowing entity only (not to individual “warm bodies”) |
| Escrows: | Tax and insurance escrows typically waived except in event of default |
| Servicing: | Fantini & Gorga services the loan |
| Observation: | This life insurance company is extremely aggressive in seeking loans at modest or low LTV on good real estate, especially with terms of 10 years or more. The non-recourse provisions without the usual “warm body” carveouts are particularly attractive to risk-averse borrowers |
