Freddie Mac has announced it financed $24 billion in multifamily whole loan and bond guarantee business in 2008, a more than 10 percent increase over its 2007 volume. The total includes Freddie Mac’s targeted affordable housing products, which finance apartments that receive some form of government subsidy. In addition to the mortgage settlement volume, Freddie Mac purchased $1.4 billion in CMBS in 2008, compared to $22 billion in 2007. Freddie Mac’s multifamily transactions financed approximately 418,000 apartment homes, the vast majority of which are affordable to low- or moderate-income families. Highlights of Freddie Mac’s multifamily business in 2008 are:
- Approximately $18.8 billion settled through Freddie Mac’s conventional programs, including about $2 billion of conventional structured volume;
- Nearly $5.5 billion in targeted affordable housing products was transacted, including over $3.6 billion in targeted affordable housing structured business;
- Over $3 billion in Capped ARM financings (1) and just over $2 billion in Acquisition Upgrade and Acquisition Rehabilitation Mortgages;
- $10.4 billion of the transactions used the Freddie Mac Early Rate- Lock option;
- Commercial mortgage-backed securities (CMBS) purchase volume of $1.4 billion;
- Purchases of approximately $1.2 billion in seniors housing mortgages;
- Purchases of more than $580 million in student housing mortgages;
- Completed approximately $450 million of business for the Freddie Mac Targeted Affordable Fully Delegated Underwriting program; and
- Nearly $415 million in Capital Markets Execution activity.
