Freddie Mac (OTCQB: FMCC) announced today that it saw a record-setting $56.8 billion in loan purchase and bond guarantee volume in 2016, up from $47.3 billion in 2015. The company also announced it issued an unprecedented $51.2 billion in multifamily securities, effectively transferring the majority of credit risk from taxpayers to private investors. This is the second consecutive year Freddie Mac has been the country's top multifamily lender.
"Thanks to our incredible network of seller–servicers, investors, and borrowers, Freddie Mac is the nation's largest multifamily lender for the second year in a row," said David Brickman, executive vice president of Freddie Mac Multifamily, in a statement.
"We surpassed all of our earlier records for purchases and issuance in 2016 and enter the new year committed to providing essential liquidity to the multifamily market," Brickman added. "I am especially proud of our Freddie Mac team, whose determination and ingenuity ensures that our financing reaches every segment of the multifamily market."
In addition to conventional and small-balance loans, Freddie finances workforce and manufactured housing, as well as senior, student, and state or federally subsidized properties. And the Freddie Mac Green Advantage program can be used with the GSE's other multifamily loan products to finance energy- and water-saving property improvements.
Approximately $20.4 billion worth of Freddie's loan purchases in 2016 weren't subject to the Federal Housing Finance Agency's $36.5 billion loan-purchase cap. These include certain loans for affordable housing, small multifamily properties, senior housing, manufactured housing communities, and energy- and water-saving improvements.
"Looking ahead, we're focused on providing mortgage capital, especially for affordable rental housing in markets where demand continues to far outstrip supply, and we expect our volumes will align with the market's overall growth," Brickman said.
Freddie Mac Multifamily helps ensure an ample supply of affordable rental housing by purchasing and securitizing mortgages on apartment buildings nationwide. The loans range from $1 million to those worth several billion dollars, and roughly 90% support rental units for low- and moderate-income households.
Freddie Mac was established by Congress in 1970 to provide liquidity, stability, and affordability to the nation's residential mortgage markets. The company supports communities across the nation by providing mortgage capital to lenders. The GSE is the largest source of financing for multifamily housing. Additional information is available at FreddieMac.com, on Twitter at @FreddieMac, and at Freddie Mac's blog, FreddieMac.com/blog.