For 4 decades, borrowers have been shut out of the pricing process for loans insured by HUD, RHS, and FNMA.
Your interest rate is determined by the price of the bonds your lender will be selling.
Due to the nature of the REMIC execution for those bonds, pricing is much more complex than adding a spread to a benchmark.
Best execution for HUD multifamily borrowers means the borrower achieves the lowest possible interest rate available for their loan.
1. The loan is bid to all 15+ possible REMIC sponsors. REMIC sponsors are the best-capitalized financial institutions on Wall Street who are too big to fail.
2. In order to bid to all possible buyers, the lender's contracts must fairly de-risk the investor from nondelivery damages. Liquidated damages risk must be a part of the purchase contract.
3. Best Execution lenders put their clients' needs above their own.
4. Best execution is transparent, and lenders who use the KimmyMae platform are confident of their business processes.
We understand that relationships matter, and our platform unlocks new opportunities for lenders to discover new buyers for their bonds. The KYC process is a hassle for investors, so we're making it easier and more cost-effective. Small lenders should have access to all 15 bidders too.
Affordable housing, due to its government subsidies, is more rate-sensitive than any other multifamily real estate. We think all affordable deals should be certified Best Execution for the sake of the US taxpayer, who is ultimately at risk for defaults. HUD offers reduced-MIP loans for "broadly affordable" and "green" projects they insure.
Those loans have interest rate/price caps. Lenders who use our platform will be able to immediately calculate the maximum interest rate they can charge you based on your application and reduced-MIP status.