Freddie Mac Chalks Up Second-Largest Year in Multifamily in ’13

Freddie Mac's volume in the multifamily space was $25.9 billion in 2013, the second largest annual total for the GSE.

Washington, DC—According to Freddie Mac, its volume in the multifamily space was $25.9 billion in 2013, the second largest annual total for the GSE. The largest yearly volume, which came in at $28.8 billion, was in 2012. The company was just under a $25.9 billion loan purchase cap for 2013 established by the company’s conservator, the Federal Housing Finance Agency.

Among other activities, Freddie Mac reports that it issued a record $28 billion in multifamily securities in 2013 in K-Deals, up from $21.2 billion in 2012. Since the program started in 2009, and through year-end 2013, the company has sold $71.5 billion in multifamily loans, which represents about $10.5 billion in unguaranteed CMBS securities and $61 billion in Freddie Mac issued and guaranteed securities.

Last year the company also settled roughly $2.5 billion in targeted affordable housing products, of which about $1.6 billion were multifamily bond credit enhancements and Tax-Exempt Bond Securitizations (TEBS).  That was part of the GSE’s focus on financing for apartments that receive government rent assistance or low-income housing tax credits.

All together, Freddie Mac provided financing for nearly 1,600 properties totaling about 388,000 apartment units, of which the majority were affordable to families earning low or moderate incomes. Typically those properties were built before 1990 and were in need of capital improvements, notes David Brickman, senior vice president of Freddie Mac Multifamily.

The company reported a low delinquency rate of 9 basis points as of December 31, 2013, reflecting its continued strong portfolio performance. (Delinquencies are two or more monthly payments past due or in the process of foreclosure). As another measure of its health, Freddie Mac also achieved a CMBS special servicer rating of CSS2- and a CMBS master servicer rating of CMS2 from Fitch, as well as a commercial mortgage special servicer ranking of MOR CS2 and a commercial mortgage trust advisor ranking of MOR TA3 from Morningstar Credit Ratings.