The first half of 2016 was a showcase of creative solutions, out-of-the-box thinking, strong relationship building, and tangible business results. Here are just a few examples of how Freddie Mac Multifamily has been moving rental housing forward since January.
Rising loan volumes. We provided $26.9 billion in multifamily funding during the first half of the year – putting us on target for another great year. It's important to note that roughly 90% of the units funded are affordable to low– and moderate–income renters and the vast majority of loans are securitized–transferring risk to private investors.
Fast Small Balance Loan commitments. Our first of its kind Small Balance Loan (SBL) Lab in June resulted in the issuance of 24 loan commitments to our Sellers for a total of $57 million in loans – supporting more than 1,300 units, over 90% of them affordable to low– to moderate–income renters. The best part: each loan took about an hour (or less!) to underwrite.
Volatility management. Customers took advantage of Freddie Mac options to lock in rates now as protection against market volatility. Borrowers can index–lock Treasury rates and hold spreads for 60 days after going under application. We have a 75–day index lock for seniors housing.
Process innovations. We continued to find ways to streamline – like reducing loan processing requirements and timeframes and removing a significant bottleneck to shorten quote turnaround times— and make doing business with us easier.
Next up. Look for our Multifamily Mid–Year Outlook 2016 shortly for our insights into the market's performance through this year and into next.