Freddie Mac Sets Record with $78 Billion Multifamily Production in 2018

Thursday, 17. January 2019 14:00

MCLEAN, Va., Jan. 17, 2019 (GLOBE NEWSWIRE) -- Freddie Mac’s (OTCQB: FMCC) Multifamily line of business today announced it has set a new record with $77.5 billion in loan purchase and guarantee volume for 2018, and $500 million in Low-Income Housing Tax Credit (LIHTC) equity investments. The $78 billion in total production bests the company’s prior record of $73.2 billion set in 2017. Overall, the company financed more than 860,000 rental units, more than 90 percent of which are considered affordable to low- and moderate-income families making 120 percent of area median income (AMI) and below.

“We’re extremely proud of our efforts to meet our affordability mission and our continued leadership of the multifamily industry in both purchase volume and securitization,” said Debby Jenkins, executive vice president and head of Freddie Mac Multifamily. “In the last decade, we have fundamentally transformed into a company that thrives on innovation. We’re working to harness that innovation every day—to create and enhance offerings to meet customer’s diverse needs, to lower our cost of capital and protect taxpayers with innovative securities, and to lead the multifamily industry into its next great chapter. Without question, our team at Freddie Mac Multifamily and our network of Sellers and Servicers are the driving force behind our successes and we thank everyone for their dedication to this business and industry.”

In addition to the overall business volume, Freddie Mac served all corners of the multifamily market through its range of offerings, including Small Balance Loans, Targeted Affordable Housing and Green Advantage® businesses. The company also securitized a record total of $72.8 billion through its many securitization offerings, such as K and SB Deals, transferring a large majority of expected and stress credit risk to third-party investors. Of Freddie Mac's total volume of $77.5 billion, $44.9 billion was not subject to the Federal Housing Finance Agency's volume cap while $32.6 billion was subject to the volume cap. Uncapped transactions can include certain loans for affordable housing, smaller multifamily properties, seniors housing, manufactured housing communities, and energy- and water-saving improvements.

Jenkins added, "We’re proud of our successes in 2018, but we do not measure them by numbers alone. As we look forward, we’re going to continue working to address the persistent affordability challenges facing countless renters. In fact, far too many Americans are struggling to find suitable housing at a reasonable price, and we are continuing our work toward innovations that can help. We’re also striving to improve the customer experience through our digital transformation initiative. This multiyear effort will leverage new technologies to redefine the commercial loan experience so that it is more transparent and efficient."

Freddie Mac Multifamily 2018 Highlights
In addition to the record $78 billion in total production, the company reached the following milestones:

  • A record $8.1 billion in Targeted Affordable Housing Loans1.
  • More than $8.3 billion in Small Balance Loans, up from $7.8 billion in 2017
  • Nearly $23.1 billion in Green Advantage loans for energy- and water-saving improvements to workforce housing.
  • LIHTC Equity Investments totaling $500 million—Freddie Mac’s first LIHTC equity investments since 2008.

      Additional highlights include:

  • $4.1 billion in Seniors Housing Loans (including seniors apartments)
  • $2.5 billion in Student Housing Loans
  • $1.8 billion in manufactured housing community loans

Freddie Mac Multifamily is the nation's multifamily housing finance leader. Historically, more than 90 percent of the eligible rental units we fund are affordable to families with low-to-moderate incomes making 120 percent of area median income and below.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.

1 Financing for properties that feature either some or all units with rent restrictions and/or other federal and state subsidies. 2017 amount adjusted to conform to current presentation.

MEDIA CONTACT: Mike Morosi
(703) 918-5851
Michael_Morosi@FreddieMac.com

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Related Links: Federal Home Loan Mortgage Corporation
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