Freddie Mac recorded $20.3 billion in volume last year for its multifamily business – loan purchase and bond guarantee volume – which is a 32% increase compared to $15.4 billion in 2010. This volume includes Freddie Mac's targeted affordable housing products, which finance apartments that receive some form of government subsidy.
According to Freddie Mac, $16.5 billion – or 81% – of total new-purchase multifamily volume was through its Capital Markets Execution (CME) program, the largest annual volume amount to date. Freddie Mac securitized $13.7 billion in CME mortgages underlying 12 of the new K Certificate transactions with a guarantee of the Series A certificates, totaling $11.7 billion.
Furthermore, 58% of the total 2011 loan purchases or credit enhancements were refinances, while 35% were acquisitions, 5% were new construction and the remainder were rehabilitations.
‘Our 2011 purchase volume reflects a growing market, and the fact that we remained competitive is due to the strength of our business and strong relationships with sellers, servicers and borrowers," says David Brickman, senior vice president of Freddie Mac's multifamily business. "We continue to play a dominant role in providing liquidity to the sector and delivering strong business results. Looking ahead, we expect robust growth in the multifamily market. The outlook is very positive due to solid fundamentals, demographics, low interest rates and strong capital flows into the sector.’
