$2.5 Billion: Senior Housing’s Best Year Ever
February 19, 2016
By Steven T. Schmidt
I’m excited to announce that Freddie Mac’s dedicated senior housing loan team, in partnership with our specialty network of Seller/Servicers, had our best year ever in 2015. Our total loan volume reached $2.5 billion, an impressive 108% increase over 2014. This encompassed 168 loans, which helped provide affordable housing for seniors across the country.
The overwhelming majority of these senior housing loans either has or will soon be securitized. Freddie Mac has been securitizing senior housing loans since 2013, which is providing greater public transparency on senior housing loan performance, enabling additional affordable senior housing financing as more lenders and investors become informed and are attracted to the senior housing space.
Fulfilling Our Mission
Many seniors in this country are on fixed incomes and require affordable housing. As part of Freddie Mac’s mission, we are dedicated to supporting this audience. We delivered last year like no year before it. By being more flexible and working closely with our experienced Sellers, we grew our volume to a record high. Since 1998, when Freddie Mac entered the senior housing market, we have deployed more than $14.6 billion to support senior housing properties.
The need for quality affordable seniors housing will continue to develop as the U.S. population ages. During the first five years that baby boomers enter the 75-year-plus population (2021-2025), the overall 75-year-plus population is projected to grow cumulatively by 22.6 percent... a rate that is almost six times the projected growth of the U.S. population over the same period. Freddie Mac’s commitment to meeting this rapidly rising demand for seniors housing remains steadfast and strong.
— Steven T. Schmidt, National Director, Senior Housing
Read about two large senior housing deals here.