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Freddie Mac Supported Industry with $20.3 Billion in 2011 Multifamily Volumes

MCLEAN, Va., Feb. 2, 2012 -- Freddie Mac (OTC: FMCC) announced today that it had $20.3 billion in volume for its multifamily business (loan purchase and bond guarantee volume), a 32 percent increase compared to $15.4 billion in 2010. This volume includes Freddie Mac's targeted affordable housing products, which finance apartments that receive some form of government subsidy. 

Quotes from David Brickman, senior vice president of Freddie Mac Multifamily:

  • "Our 2011 purchase volume reflects a growing market, and the fact that we remained competitive is due to the strength of our business and strong relationships with sellers, servicers and borrowers. We continue to play a dominant role in providing liquidity to the sector and delivering strong business results."
  • "Looking ahead, we expect robust growth in the multifamily market. The outlook is very positive due to solid fundamentals, demographics, low interest rates and strong capital flows into the sector."
  • "Investor interest in our securitizations continues to grow. We are a regular issuer and have leveraged private capital in the multifamily debt and mortgage markets."

Freddie Mac's Multifamily business 2011 highlights:

  • A record breaking year through Freddie Mac's conventional programs, settling almost $19 billion;
  • $16.5 billion, or 81 percent, of total new purchase volume was through the Capital Markets Execution(SM) (CME) program – the largest annual volume amount to date;
  • Securitizing $13.7 billion in CME mortgages underlying twelve new K Certificate transactions with our guarantee of the Series A certificates totaling $11.7 billion;
  • 58 percent of the total 2011 loan purchases or credit enhancements were refinances, 35 percent were acquisitions, 5 percent were new construction, and the remainder were rehabilitations;
  • Transacting approximately $1.5 billion in targeted affordable housing products;
  • Approximately $1 billion in multifamily bond credit enhancements;
  • Purchasing over $700 million in seniors housing mortgages;
  • Purchasing more than $1.1 billion in student housing mortgages;
  • Low delinquency rate at 22 basis points as of December 31, 2011. (Delinquencies are based on the unpaid principal balance of mortgage loans that are two or more monthly payments past due or in the process of foreclosure.);
  • Financing approximately 1,300 properties amounting to about 321,000 apartment units, of which the majority are affordable to families earning low or moderate incomes; and
  • Estimated to have financed approximately 29 percent of the new business in the multifamily market in 2011. (Full year industry figures for 2011 are not yet available.)

Click here to read the 2010 business volume press release.

Since the launch of Freddie Mac's multifamily business in 1993, it has provided more than $263 billion in financing for more than 58,000 multifamily properties.

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.  www.FreddieMac.com

SOURCE Freddie Mac

For further information: CONTACT: Patti Boerger, +1-703-903-2445, Patricia_Boerger@FreddieMac.com
 

The financial and other information contained in the documents that may be accessed on this page speaks only as of the date of those documents. The information could be out of date and no longer accurate. Freddie Mac does not undertake an obligation, and disclaims any duty, to update any of the information in those documents. Freddie Mac's future performance, including financial performance, is subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect the company's future results are discussed more fully in our reports filed with the SEC.


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