Freddie Mac – Biggest year ever in Multifamily

For the second year in a row, Freddie Mac set a new record for multifamily security issuance.

Freddie Mac issued $72.8 billion in multifamily securities in 2018, breaking its 2017 record of $68 billion.

Debby Jenkins, head of Freddie Mac Multifamily, said “With our diverse array of securities, including our flagship K Deals, we continue pioneering efforts to meet private sector demand for investment products while shifting risk away from taxpayers.”

Of that total, $77.5 billion was loan purchase and guarantee volume, while $500 million came in the form of Low-Income Housing Tax Credit equity investments.

Overall, the GSE said that it financed 860,000 rental units, more than 90% of which are considered affordable to low- and moderate-income families.

“We’re extremely proud of our efforts to meet our affordability mission and our continued leadership of the multifamily industry in both purchase volume and securitization,” said Debby Jenkins.

“In the last decade, we have fundamentally transformed into a company that thrives on innovation. 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,” Jenkins continued.

“Without question, our team at Freddie Mac multifamily and our network of sellers and servicers are the driving force behind our successes and we thank everyone for their dedication to this business and industry.”

“We’re proud of our successes in 2018, but we do not measure them by numbers alone. As we look forward, we’re going to continue working to address the persistent affordability challenges facing countless renters,” Jenkins said about plans for this year.