Freddie Mac Sets Record of $24B in Volume for Multifamily

By Anuradha Kher, Online News EditorMcLean, Va.–Freddie Mac has set a record of $24 billion in volume for its multifamily whole loan and bond guarantee business (multifamily mortgage settlements) in 2008. This is a more than 10 percent increase over the 2007 volume of $22 billion. This volume includes Freddie Mac’s targeted affordable housing products, which finance apartments that receive some form of government subsidy. In addition to the mortgage settlement volume, Freddie Mac purchased $1.4 billion in Commercial Mortgage Backed Securities (CMBS) in 2008, compared to $22 billion in 2007, reflective of the inactive CMBS market. Freddie Mac’s multifamily transactions financed approximately 418,000 apartment units, the vast majority of which are affordable to families earning low or moderate incomes.”Freddie Mac’s multifamily business had a solid year in 2008, in spite of considerable housing market and economic turmoil,” says Mike May, senior vice president of Multifamily for Freddie Mac. “Holding true to our vital mission, Freddie Mac continues to provide critically needed liquidity and stability to help keep the country’s multifamily housing finance markets working.”In 2008, approximately $18.8 billion was settled for multifamily properties through Freddie Mac’s conventional programs, which included approximately $2 billion of conventional structured volume.In addition, nearly $5.5 billion in targeted affordable housing products was transacted, including over $3.6 billion in targeted affordable housing structured business.Other highlights of Freddie Mac’s multifamily business in 2008 are:Over $3 billion in Capped ARM financings (and just over $2 billion in Acquisition Upgrade and Acquisition Rehabilitation Mortgages)$10.4 billion of the transactions used the Freddie Mac Early Rate-Lock optionCommercial mortgage-backed securities (CMBS) purchase volume of $1.4 billionPurchases of approximately $1.2 billion in seniors housing mortgages Purchases of more than $580 million in student housing mortgagesCompleted approximately $450 million of business for the Freddie Mac Targeted Affordable Fully Delegated Underwriting programNearly $415 million in Capital Markets Execution activity.