Municipal Mortgage and Equity LLC, a Baltimore real estate equity and debt company, said Oak Grove Commercial Mortgage LLC has agreed to lend it $10 million.
The loan can be increased to $15 million under some circumstances, MuniMae said in a Securities and Exchange Commission filing. The term of the loan is for one year.
As part of the deal, which was announced last week, MuniMae said it agreed to sell to Oak Grove, for $70.5 million, its business of originating loans that are to be sold to or insured by government-sponsored enterprises or agencies — primarily Fannie Mae, Freddie Mac, and the Government National Mortgage Association — and servicing those loans.
MuniMae said the sale is subject to various conditions, including approval by the GSEs and Ginnie.