Targeted affordable designation expands Enterprise’s multifamily product offerings
COLUMBIA, MD – February 9, 2011 – (RealEstateRama) — Enterprise Community Investment, Inc. (Enterprise), a national leader in affordable housing and community development, today announced that Freddie Mac (OTC: FMCC) has given the company approval to originate affordable multifamily loans nationally on its behalf. The new license granted to Enterprise rounds out the company’s agency platform, which already includes capacity to sell and service loans for Fannie Mae and FHA. Enterprise is among a handful of lenders approved to sell and service targeted affordable housing loans nationwide. These are loans on apartment properties with rents that are affordable to low- and very-low income individuals whose incomes are at or below 80 percent or 60 percent of the area median income, respectively.
“Enterprise is thrilled to have the ability to offer our borrowers one more powerful tool to finance their affordable rental developments,” said Charlie Werhane, president and CEO of Enterprise Community Investment. “We’re also delighted that Freddie Mac has demonstrated confidence in the strength of Enterprise and the depth of our affordable team.”
“Enterprise has the sound underwriting experience and geographic reach needed to meet the needs of very affordable apartment markets, which help provide affordable homes for low-income families,” said Kim Griffith, VP of Multifamily at Freddie Mac. “We look forward to working with the Enterprise team.”
In 2010, Enterprise closed more than $126 million in affordable multifamily loans and projects, and the company will originate approximately $195 million in affordable debt across all of its programs in 2011.
“Enterprise looks forward to meeting the ever-changing financing needs of our borrowers in 2011, and we’ll do it in a way that maintains prudent underwriting standards in a volatile market,” said Lamar Seats, SVP of Multifamily Mortgage Finance at Enterprise.
Targeted affordable housing loans include:
- mortgages on properties subject to low-income housing tax credits;
- mortgages on properties that receive federal subsidies; and
- transactions in which Freddie Mac will credit enhance a mortgage that backs tax-exempt bonds, a trust certificate or other instrument related to tax-exempt bonds.
Enterprise is a leading provider of the development capital and expertise it takes to create decent, affordable homes and rebuild communities. For nearly 30 years, Enterprise has introduced neighborhood solutions through public-private partnerships with financial institutions, governments, community organizations and others that share our vision. Enterprise has raised and invested $10.6 billion in equity, grants and loans to help build or preserve more than 270,000 affordable rental and for-sale homes to create vital communities. Enterprise is currently investing in communities at a rate of $1 billion a year. Visit www.enterprisecommunity.org and www.enterprisecommunity.com to learn more about Enterprise’s efforts to build communities and opportunity.
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.
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