Freddie Mac’s multifamily division set a record with $77.5 billion in loan purchase and guarantee volume for 2018, and $500 million in low-income housing tax credit equity investments. This year’s production beats the previous record of $73.2 billion that was achieved 2017. Overall, the company financed more than 860,000 rental units, more than 90 percent of which are considered affordable to low- and moderate-income families making 120 percent or below of the area median income.

[caption id="attachment_7455" align="alignright" width="300"] Debby Jenkins[/caption]

“In the last decade, we have fundamentally transformed into a company that thrives on innovation,” Debby Jenkins, executive vice president and head of Freddie Mac Multifamily. “We’re working to harness that innovation every day—to create and enhance offerings to meet customer’s diverse needs, to lower our cost of capital and protect taxpayers with innovative securities, and to lead the multifamily industry into its next great chapter.”

In addition to the overall business volume, Freddie Mac served all corners of the multifamily market through its range of offerings, including Small Balance Loans, Targeted Affordable Housing and Green Advantage businesses.

Also, the company securitized a record $72.8 billion through its many securitized deals, transferring a majority of expected and stress credit risk to third-party investors.

Of Freddie Mac's total volume of $77.5 billion, $44.9 billion was not subject to the Federal Housing Finance Agency's volume cap, while $32.6 billion was subject to the volume cap. Uncapped transactions can include certain loans for affordable housing, smaller multifamily properties, seniors housing, manufactured housing communities, and energy- and water-saving improvements.

“As we look forward, we’re going to continue working to address the persistent affordability challenges facing countless renters,” said Jenkins. “In fact, far too many Americans are struggling to find suitable housing at a reasonable price, and we are continuing our work toward innovations that can help."

Freddie Mac Multifamily 2018 Highlights

In addition to the record $78 billion in total production, the company reached the following milestones:

• A record $8.1 billion in Targeted Affordable Housing Loans.
• More than $8.3 billion in Small Balance Loans, up from $7.8 billion in 2017
• Almost $23.1 billion in Green Advantage loans for energy- and water-saving improvements to workforce housing.
• LIHTC Equity Investments totaling $500 million—Freddie Mac’s first LIHTC equity investments since 2008.

Additional highlights include:

• $4.1 billion in Seniors Housing Loans, including apartments for seniors.
• $2.5 billion in Student Housing Loans
• $1.8 billion in manufactured housing community loans

More than 90 percent of the eligible rental units Freddie has funded are affordable to families with low-to-moderate incomes making 120 percent or less of the area median income.