Freddie Mac Sets New Multifamily Record for 2007 Transactions
55 Percent Increase Over Previous Year
McLean, VA – February 04, 2008 – Freddie Mac announced today that it purchaseda record $44.7 billion in new multifamily business transactions in 2007, a 55 percent increase over the 2006 volume of $28.8 billion. This volume includes approximately $3.7 billion in targeted affordable housing products, which finance apartments that receive some form of government subsidy. All together, Freddie Mac’s multifamily transactions financed approximately 644,400 apartment homes affordable to families earning low or moderate incomes.
“Despite a difficult market, 2007 was a good year for Freddie Mac’s multifamily business,” said Mike May, senior vice president of Multifamily Sourcing for Freddie Mac. “We provide value in all market environments and are in this market for the long term. The mid-year exit of conduits from the market drove a significant increase in conventional loans to Freddie Mac at a time when we were managing some of the largest and most complex pool transactions in our history.”
“One was a $2.8 billion transaction involving the Freddie Mac Tax-Exempt Bond Securitization execution with Centerline Holding Company; the other involved our purchase of two pools of floating rate mortgages totaling $1.8 billion and the assumption of an additional 15 mortgages with Archstone-Smith. In addition, we delivered several new products and enhancements such as the Freddie Mac Acquisition Upgrade MortgageSM and Freddie Mac Acquisition Rehabilitation Mortgage SM, as well as announced our first fully delegated underwriter.”
Highlights of Freddie Mac’s multifamily business in 2007 are:
- Nearly $17 billion through Freddie Mac’s flow programs, which included over $700 million of targeted affordable housing products and almost $14 billion of loans with its fixed-to-float feature;
- Approximately $5 billion through Freddie Mac’s structured programs, including over $3 billion in targeted affordable housing products and almost $2 billion in conventional structured business;
- Over $2.5 billion in ARM financings and approximately $800 million in Acquisition Rehabilitation/Upgrade Mortgage products;
- Over $100 million of business for our Targeted Affordable Full Delegated Underwriting program;
- Approximately $1.0 billion in seniors housing mortgages;
- Over $450 million in low-income housing tax-credit investments;
- Over $22 billion in CMBS activity, including small loans volume; and
- Portfolio securitization volume of $200 million.
Since the launching of Freddie Mac’s current multifamily business in 1993, Freddie Mac has purchased more than $189 billion in multifamily mortgages, financing rental housing for more than four million families.
Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to support homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible more than 50 million times, ensuring financing for one in six homebuyers and more than four million renters.