First Foundation Inc. (NASDAQ: FFWM), a financial services company that
provides investment management, wealth planning, consulting, trust,
insurance, and banking services primarily to high-net-worth individuals
and businesses through its two subsidiaries, First Foundation Bank and
First Foundation Advisors, today announced the sale and securitization
of $102 million of multifamily loans through the Small Balance Loan
(SBL) origination initiative managed through Freddie Mac. First
Foundation Bank will act as the subservicer of the loans.
“We are excited about establishing a relationship with Freddie Mac which
allows us to maintain the servicing of the loans and thereby continue to
provide the highest level of service to our clients,” said Scott F.
Kavanaugh, CEO of First Foundation. “As we expect to continue to produce
high volumes of multifamily loans through our origination platform, we
believe our relationship with Freddie Mac will allow us to more
effectively manage our loan portfolio through future loan sales and
securitizations.”
Under the securitization, $92 million of Structured Pass-Through
Certificates were issued and guaranteed by Freddie Mac. In addition,
certificates consisting of the Class X2, B and R Certificates, which
will be subordinate to the Structured Pass-Through Certificates and not
guaranteed by Freddie Mac were issued and purchased by First Foundation
Bank. As a result of this transaction, First Foundation expects to
record a gain on sale of loans of approximately 2.5%.
About First Foundation
First Foundation, a financial institution founded in 1990, provides
integrated investment management, wealth planning, consulting, trust,
insurance, and banking services. The Company is headquartered in Irvine,
California with offices in Newport Beach, Pasadena, West Los Angeles,
San Diego, Oakland, Palm Desert and the Imperial Valley in California,
in Las Vegas, Nevada and in Honolulu, Hawaii. For more information,
please visit our website at www.ff-inc.com.
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