MCLEAN, VA - Freddie Mac announced that it had a banner year for its multifamily business with $47.3 billion in loan purchase and bond guarantee volume in 2015, including 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.
"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 certain 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.
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 (including seniors apartments).
Transacted roughly $1.8 billion in student housing loans.
Financed nearly $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, it has provided more than $393 billion in financing for more than 66,000 multifamily properties.