Solutions for Bank and Non-Bank Lenders Nationwide
Fulcrum's exclusive focus on multifamily provides the scale necessary for small and mid-sized bank and non-bank lenders to compete on rate and proceeds, resulting in greater lending volumes and profitability.
Solutions for Banks
While banks may have the capacity to increase leverage, it doesn’t always align with prudent risk management. Fulcrum’s A/B note structure offers a differentiated loan product that reduces risk, boosts liquidity, and helps banks capture more business. Through our Correspondent Lending program, banks can easily expand their commercial loan offerings or establish new lending units with significantly reduced time and costs compared to traditional methods. This not only creates non-interest income opportunities but can also strengthen deposit relationships.
With Fulcrum’s Co-Lending channel, banks can add senior secured credits at lower leverage points to their balance sheets, avoiding the increased risks that accompany high leverage whole loans. Additionally, through Loan Purchasing, banks can enhance liquidity without compromising the value of their loan assets by selling away a portion of their loans at par.
Solutions for Debt Funds & Alternative Lenders
Fulcrum's Correspondent Lending program offers Debt Funds and Alternative Lenders an out-of-the-box solution to add a new lending product at a fraction of the usual time and cost. Fulcrum can either immediately fund loans on behalf of the lender or purchase the entire structured loan within days of funding. By becoming a Correspondent Lending partner, lenders benefit from Fulcrum's accretive leverage and liquidity solutions, which are essential for responsibly lending while profitably attracting new business.
Additionally, by incorporating a downstream loan product lower on the risk spectrum, lenders can mitigate maturity risk by refinancing bridge and construction loans into Fulcrum's Senior Stretch loan product. This product provides greater leverage than conventional loans but at a lower cost than bridge and construction loans.
Co-Lending can offer accretive, fixed-rate, and match-term senior leverage for lenders deploying high-yield capital into multifamily assets. Fulcrum provides senior leverage to high-yield lenders through an A/B note loan structure, in which Fulcrum purchases Note A and the high-yield lender retains Note B. Funding can occur simultaneously at loan closing, or Fulcrum can purchase Note A post-closing. Debt Funds and Alternative Lenders may also benefit from Fulcrum's Loan Purchasing program to reduce exposure to legacy loans originated in a lower-rate environment. Additional benefits of loan purchasing include enabling lenders to recycle capital, increase returns on equity, and diversify risk.
Solutions for Brokers & Intermediaries
Direct lenders have increasingly expanded into segments of the capital markets and mortgage banking business, while brokers and intermediaries have grown into direct lending and equity investing. Fulcrum views this as complementary to its Co-Lending, Correspondent Lending, and Loan Purchasing activities. Whether you're a bank, alternative lender, or intermediary, Fulcrum strives to deliver solutions that address the needs of your multifamily real estate clients.
As the digital infrastructure layer of multifamily finance, Fulcrum lessens the degrees of separation between the end mortgage investor and the end borrower. Fulcrum provides the underlying liquidity and leverage solutions that lending participants need. These solutions are designed to operate in a frictionless and transparent manner, reducing risk while increasing profitability for those principally invested.
