Recourse loans are loans that offer the personal guarantee of the person who lends the money or the person (s) who is behind the company that lends the money. The remedy may benefit the borrower to the extent that, if he feels safe to put his personal name and personal fortune behind the loan, he can sometimes obtain better credit terms, but in most cases, a remedy is necessary when a borrower or a credit unit alone is not strong enough or if the property itself does not fall under a category that makes it conventional. Traditionally, for example, hard money loans are a total remedy. One way or another, the remedy provides greater security for the company that lends the money. Additional representations and guarantees from the Freddie Mac Multifamily Seller/Servicer Guide for credits sold by Freddie Mac under the Multifamily Conventional Cash Mortgage Purchase Program and the Affordable Targeted Housing Cash Mortgage Purchase Program (excluding noticeable loans). Freddie Mac was founded by Congress in 1970 to provide liquidity, stability and accessibility to the country`s mortgage markets. Freddie Mac supports communities across the country by providing mortgage funds to lenders. Today, Freddie Mac is one of four housing clients and one of the largest sources of residential financing. For more information, see FreddieMac.com, Twitter @FreddieMac and Freddie Mac`s blog FreddieMac.com/blog. With recourse loans, in the event of default, in any capacity, usually in the event of a relapse with respect to credit payments, the lender can directly claim financial damages from the borrower, so that if the investor takes a loss on the property, he can go according to the borrower individually for the balance of the money. This may include reclaiming personal property, or even collateralizing the wages of a borrower`s bank account. The Optigo® small balance loan (SBL) initiative was first announced in October 2014 and extended to the company`s ongoing efforts to better serve less populated markets and provide additional liquidity to small residential buildings. Freddie Mac has a specialized network of Optigo vendors and Optigo SBL lenders who have extensive experience in this market and purchase credit across the country.
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