Freddie Mac reports that the volume of its multifamily whole-loan and bond guarantee business totaled $15 billion last year – down from almost $17 billion in 2009. This volume includes Freddie Mac's targeted affordable-housing products, which finance apartments that receive some form of government subsidy.
According to Mike May, executive vice president of Freddie Mac Multifamily, 2010 started off slowly before picking up in the second half of the year. Freddie Mac funded almost half of its 2010 volume in the fourth quarter.
‘Property owners who were sitting on the sidelines early in the year started buying and selling properties later in the year, partly due to market optimism, low interest rates and wanting to complete deals before the end of the year,’ May says.
In all, Freddie Mac Multifamily financed more than 1,000 properties – or about 241,000 apartment units – last year. The majority of the units are affordable to low- or moderate-income households.
More than $13 billion of the volume was settled through Freddie Mac's conventional programs, and $10.3 billion, or almost 70%, of total new purchase volume was financed through the company's Capital Markets Execution program.
SOURCE: Freddie Mac
