Freddie Taps GMAC for Delegated Underwriting

Freddie Mac has entered into its first delegated underwriting arrangement, which will allow GMAC Commercial Mortgage Corp. more flexibility in underwriting multifamily properties with tax-credit financing."We are experimenting with a delegated model, whereby we delegate certain underwriting decisions to the seller/servicer in exchange for some risk sharing," said Freddie Mac vice president Mitchell Kiffe. Freddie officials declined to provide any specifics about the risk-sharing agreement. Currently, Freddie re-underwrites loans made by its multifamily lenders before purchasing the loans. Under delegated underwriting, Horsham, Pa.-based GMAC will originate and underwrite loans to Freddie's standards, close the loans, and sell them to Freddie Mac. "Our new delegated underwriting initiative for tax-credit debt will complement our existing prior-approval program and enable us to support an increase in the stock of affordable apartments," said Freddie senior vice president Adrian Corbiere.