Wachovia Set Free to Underwrite Freddie Mac Affordable Loans

By Jerry Ascierto

Wachovia Multifamily Capital has received fully delegated status under Freddie Mac's Delegated Underwriting for Targeted Affordable Housing program.

The program allows approved lenders to fully underwrite loans without first seeking Freddie Mac's approval, expediting the processing time in exchange for sharing risk.

By achieving fully delegated status, lenders can shave about 30 days off of the deal cycle time of an affordable housing transaction, from a window of 90 to 120 days down to 60 to 90 days.

Wachovia is the second lender to be given fully delegated status, joining Centerline Capital Group. PNC/ARCs is also very close to achieving fully delegated status, according to Tom Booher, an executive vice president at PNC.

Five other lenders round out the Targeted Affordable Housing program roster, and three of them are close to achieving fully delegated status, according to Mike May, Freddie Mac's senior vice president of multifamily sourcing. To achieve fully delegated status under the program, rolled out in early 2005, lenders must underwrite at least eight affordable deals with Freddie Mac's prior approval.

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