Executive Perspectives Blog
This week, Freddie Mac reported strong first quarter 2014 financial results, which marks our 10th consecutive quarter of profitability. Net income was $4.0 billion and comprehensive income was $4.5 billion - which means that we'll be returning an additional $4.5 billion to taxpayers in June. This brings the total we've returned to taxpayers to more than $86 billion, $15 billion more than our cumulative draws from the Treasury.
April marks the beginning of the homebuying season, and for the first time in well over a decade, home sales – not refinancings – are expected to dominate the market. But a few stubbornly persistent myths about buying a home are likely to keep some potential buyers on the sidelines. Let's knock down those myths with the facts.
Freddie Mac's innovative credit risk sharing initiatives are not only getting traction with investors but have received significant praise from an influential and respected publication, Euromoney. Our inaugural Structured Agency Credit Risk (STACR®) debt notes recently earned Euromoney's Global Structured Deal of the Year for 2013. This is the premier award for structured capital transactions in the global capital markets.
It has been more than seven years since the beginning of the deepest housing recession since the Great Depression. As housing activity fell, nervous speculation took off in the media and industry about when (if ever) housing would get back to normal. Given the pickup in sales, new construction, and home values over the past couple of years, it’s fair to ask if we’re there yet: is the U.S. housing market back to a normal range of activity with a good balance between demand and supply forces?
Significant debate around multifamily housing policy focuses on the question of whether the federal government should support affordable multifamily rental housing and, if so, how the government should encourage private capital to flow toward it. While important, that question tends to overshadow the equally important, but more nuanced, question of what the need is for affordable housing, how to help meet it most effectively, and what trade-offs come with choosing one policy approach over another. The definition of what an affordable housing unit is, and what makes any given unit affordable – the rent level, tenant, or income level in the surrounding area – is central to the answer.