Fannie Mae has introduced a Streamlined Treasury Lock that allows multifamily borrowers to lock the applicable Treasury index earlier in the underwriting process. Available for fixed-rate acquisition loans and refinancings of $9 million and up, the new option helps experienced sponsors manage rate volatility before a transaction is ready for full rate lock.
Streamlined Treasury Lock is intended for repeat sponsors that have obtained a Fannie Mae loan within the past two years. It is best suited for strong, straightforward transactions with stable assumptions, sufficient preliminary underwriting, and a clear path to execution.
Earlier Protection Against Rate Movement
A loan’s final interest rate reflects several components, including the applicable Treasury index (such as the 5-year or 7-year U.S. Treasury), investor spread, guaranty fee, and servicing fee. This new option allows borrowers to lock the Treasury index once a loan is under application, before completing the more advanced underwriting required for a full rate lock. The quoted investor spread and total credit fees are also held, provided the final transaction facts and underwriting assumptions do not change materially.
This provides an earlier opportunity to act when Treasury rates are favorable. However, it does not lock the borrower’s complete interest rate or replace Fannie Mae’s existing rate-lock options. The transaction must subsequently be converted to either a Streamlined Rate Lock or Standard Rate Lock by the expiration date stated in the quote letter.
How Fannie Mae’s Rate-Lock Options Compare
| Streamlined Treasury Lock | Streamlined Rate Lock | Standard Rate Lock | |
| When it is used | Earlier in underwriting, after the loan is under application and sufficient preliminary diligence supports a reliable quote | After more advanced preliminary underwriting and the required Fannie Mae approval | After full underwriting |
| What it locks | Treasury index; quoted investor spread and credit fees are held, subject to final transaction assumptions | Full interest rate | Full interest rate |
| Best suited for | Experienced repeat Fannie Mae sponsors and strong, straightforward fixed-rate transactions with a clear underwriting path | Qualified transactions ready for an expedited full rate lock | Transactions completing the traditional underwriting and rate-lock process |
| How long it lasts | Through the applicable quote expiration date | Up to 180 days | Up to 180 days |
| What happens next | The transaction must convert to a Streamlined Rate Lock or Standard Rate Lock | Transaction proceeds through final underwriting and commitment | Transaction proceeds to delivery |
“The Streamlined Treasury Lock demonstrates Fannie Mae’s continued commitment to developing practical solutions that support multifamily borrowers,” said Ian Monk, head of conventional production at Lument. “For experienced sponsors with strong transactions, this added flexibility can help preserve deal economics, support execution, and ultimately advance the availability of quality multifamily housing.”
The ability to lock the Treasury index before full underwriting is complete is a meaningful benefit, but the transaction must be sufficiently advanced to support a reliable quote. Preliminary net cash flow, property value, loan sizing, borrower structure, and key parties should all be well understood. Material changes may affect the transaction’s pricing or eligibility.
The standard deposit is 2% of the amount locked, and the final loan amount may be up to 10% higher or lower without triggering a breakage fee solely because of the sizing change.
For additional eligibility requirements and terms, review the Fannie Mae Streamlined Treasury Lock term sheet.
