Freddie Mac’s multifamily line of business set a record $77.5 billion in loan purchase and guarantee volume for 2018 and $500 million in low-income housing tax credit (LIHTC) equity investments.
The $78 billion in total production bests the company’s prior record of $73.2 billion set in 2017. Overall, the company financed more than 860,000 rental units, more than 90% of which are considered affordable to low- and moderate-income families making 120% of area median income (AMI) and below.
The company’s LIHTC investments are the first since 2008.
In addition to the total production record, the company reached the following milestones:
· A record $8.1 billion in Targeted Affordable Housing loans. (financing for properties that feature either some or all units with rent restrictions and/or other federal and state subsidies. 2017 amount adjusted to conform to current presentation);
· More than $8.3 billion in Small Balance loans, up from $7.8 billion in 2017; and
· Nearly $23.1 billion in Green Advantage loans for energy- and water-saving improvements to workforce housing.
Additional highlights include:
- $4.1 billion in seniors housing loans (including seniors apartments);
- $2.5 billion in student housing loans; and
- $1.8 billion in manufactured housing community loans.
"We’re proud of our successes in 2018, but we do not measure them by numbers alone,” said Debby Jenkins, executive vice president and head of Freddie Mac Multifamily. “As we look forward, we’re going to continue working to address the persistent affordability challenges facing countless renters. 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. We’re also striving to improve the customer experience through our digital transformation initiative. This multiyear effort will leverage new technologies to redefine the commercial loan experience so that it is more transparent and efficient."
Company officials said they securitized a record total of $72.8 billion through their many securitization offerings, such as K and SB deals, transferring a large majority of 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.