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Freddie Mac Leads Nation as Top Multifamily Lender for Third Straight Year

2017 Multifamily Volume Tops $73 Billion, Setting New Company Record

MCLEAN, VA--(Marketwired - Jan 16, 2018) - Freddie Mac (OTCQB: FMCC) today announced it has financed a record-setting $73.2 billion in loan purchase and guarantee volume for 2017 -- retaining its designation as the nation's top multifamily financier for the third consecutive year. Buoyed by a host of new offerings and executions, the total is a significant increase -- nearly 30 percent -- over its 2016 total of $56.8 billion, and amounts to more than 820,000 units. Moreover, 83 percent of eligible units financed by Freddie Mac were considered affordable to low- and moderate income families making no more than 100 percent of the area median income.

"For the third consecutive year, our exceptional lenders, servicers, investors and borrowers have propelled Freddie Mac to the position of the nation's largest multifamily financier," said David Brickman, executive vice president and head of Freddie Mac Multifamily. "Our leadership goes beyond just numbers. The strength of our innovative products, underwriting and world-class securities brings liquidity to every corner of the multifamily market, while transferring the majority of risk away from taxpayers. In addition to our partners, none of this would be possible without the team at Freddie Mac Multifamily, whose creativity, dedication and enthusiasm are the driving force behind our success." 

In addition to the overall business volume, records were set in many of Freddie Mac's product offerings and programs. The company set records in small balance loans, targeted affordable housing and Green Advantage businesses. The company also securitized a record total of $68 billion through its many securitization offerings, such as K- and SB-Deals, transferring a large majority of expected and stress credit risk to third party investors. Of Freddie Mac's total volume of $73.2 billion, $39.4 billion was not subject to the Federal Housing Finance Agency's volume cap while $33.8 billion was subject to the volume cap. These include certain loans for affordable housing, smaller multifamily properties, seniors housing, manufactured housing communities, and energy- and water-saving improvements.

Brickman added, "Even as we acknowledge 2017's achievements, we're excited about the future. In 2018, we anticipate continued strong market fundamentals -- demographic trends, population growth and changing consumer preferences -- to bolster demand, while our innovative new offerings will help to close gaps in the market. The result will be another successful year for Freddie Mac Multifamily and additional affordable rental opportunities for families across the United States."

Freddie Mac Multifamily 2017 Lending Highlights
In addition to the record $73.2 billion in overall volume, the company reached the following milestones:

  • A record $8.6 billion in targeted affordable housing loans1, up from $5.6 billion in 2016
  • More than $7.8 billion in small balance loans, up from $4.5 billion in 2016
  • Nearly $19 billion in Green Advantage loans for energy- and water-saving improvements to workforce housing, up from less than $3.3 billion in 2016

Additional highlights include:

  • $3.6 billion in seniors housing loans (including seniors apartments)
  • $1.7 billion in student housing loans
  • $1.1 billion in manufactured housing community loans

Freddie Mac Multifamily is the nation's multifamily housing finance leader. Historically, nearly 90 percent of the eligible rental units we fund are affordable to families with low-to-moderate incomes. 

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.

1 Financing for properties that feature either some or all units with rent restrictions and/or other federal and state subsidies. 2016 amount adjusted to conform to current presentation.



MEDIA CONTACT:
Christopher Spina
703-388-7031
Christopher_Spina@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.