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Affordable Housing and Small Balance Loans are Standouts in Banner Year for Multifamily

February 2, 2016

Banner Year for Multifamily

Freddie Mac Multifamily’s exceptional 2015 performance, with $47.3 billion in loan purchase and bond guarantee volume, included a record high of $5 billion in financing for properties that house individuals with low incomes and $2.6 billion in loans for small apartment properties.

Freddie Mac lenders were key partners in the last year’s success. See our top lenders for 2015.

“These milestones represent our contributions in every corner of the market, including supporting affordability for households who need it most,” said David Brickman, Executive Vice President of Freddie Mac Multifamily. “This year we will continue on our path to preserve more workforce and affordable housing, and grow our financing for small properties, manufactured housing communities and seniors housing.”

Of the total new business volume, approximately $17 billion included loans for affordable housing, smaller multifamily properties, seniors housing and manufactured housing communities not subject to the Federal Housing Finance Agency $30 billion loan purchase cap.

Read more about Freddie Mac’s Targeted Affordable Housing results and Small Balance Loan results for 2015.

Brickman added, “We think the industry will grow this year due to continued investment sale activity and refinance opportunities of CMBS maturing loans. We also expect Freddie Mac’s business to grow proportionately with the market.”

Freddie Mac Multifamily 2015 Business Highlights:

  • Settled more than $5 billion in targeted affordable housing business, of which approximately $1.3 billion went toward multifamily bond credit enhancements, other guaranteed transactions, and Tax-Exempt Bond Securitizations (TEBS).
  • Purchased just over $2.5 billion in seniors housing mortgages.
  • Transacted roughly $1.8 billion in student housing loans.
  • Financed $2.6 billion in small balance loans.
  • Purchased more than $1 billion in manufactured housing community loans.
  • Executed 47 Multifamily securities offerings for a total transactions volume of $37.7 billion which includes K-Deals and a small volume of other securities such as SB-, Q- and M-Deals.
  • Securitized $35.6 billion of multifamily loans into K-Deal securities bringing the total since 2009 to $128.4 billion, backing approximately $109.8 billion in guaranteed certificates and almost $18.6 billion in unguaranteed certificates.
  • Continued to provide a consistent source of liquidity to support affordable rental housing nationwide. Nearly 90 percent of the eligible apartment units Freddie Mac finances are affordable to households earning up to the area median income, and most of those loans are securitized.
  • Provided financing for more than 3,500 properties comprising just over 650,000 apartment units, of which the majority are affordable to families earning low or moderate incomes.
  • Reported a low delinquency rate of 2 basis points as of December 31, 2015, reflecting our continued strong portfolio performance.

Since the launch of Freddie Mac’s multifamily business in 1993, Freddie Mac has provided more than $393 billion in financing for about 66,000 multifamily properties.

Freddie Mac Multifamily helps ensure an ample supply of affordable rental housing by purchasing and securitizing mortgages on apartment buildings nationwide. The loans range from $1 million to several billion and roughly 90 percent support rental units for low- and moderate-income households. Freddie Mac securitizes about 90 percent of the multifamily loans it purchases, thus transferring the vast majority of the expected credit risk from taxpayers to private investors.

 


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