Green Park Financial has partnered with advisory firm J.S. Watkins Partners on a new small loan program for the multifamily industry, which will acquire pools of small loans from regional banks and other financial institutions that lack a clear path to Fannie Mae. J.S. Watkins will source and execute the transactions, while Green Park will aggregate the loans and sell the pools to Fannie Mae.
Jon Siegel and Todd Watkins of J.S. Watkins Partners will lead the effort on the front end. Both are Fannie Mae veterans, and Watkins developed and implemented Fannie Mae's strategy for purchasing seasoned loan pools from large institutions.
“Banks are looking for ways to access liquidity, and this is a new tool for them,” said Watkins. “Fannie Mae doesn't have the resources to get to everyone that would like to access Fannie Mae, so we're trying to extend that capacity into an area that has been underserved.”
The program will target loans up to $5 million for market-rate and affordable multifamily properties. The pools sold to Fannie Mae will be between $20 and $150 million, averaging in the $30 million to $40 million range.