Freddie Mac Multifamily loans targeted at affordable housing increased by nearly 60% by 2022

The Office met all Affordability Goals with a Year-End total of $73.8 billion.

MCLEAN, Va., January 18, 2023 (GLOBE NEWSWIRE) — January 17, 2023 – Freddie Mac (OTCQB: FMCC) Total Multifamily production in 2022 is $73.8 billion, including a record nearly $1 billion in low-income housing tax credits (LIHTC). The agency also increased its affordable housing sales for properties with rent restrictions or subsidies by nearly 60% to a record $15.3 billion in 2022, from $9.6 billion in 2021.

“During a year marked by record high rental rates and a crisis in the supply of affordable housing, Freddie Mac Multifamily has prioritized its affordable housing mission,” said Kevin Palmer, head of Freddie Mac Multifamily. “Not only did we exceed our affordable housing goals, but we also set a record for Affordable Housing, increased our LIHTC investment by 45% and made nearly $2 billion in forward commitments. It was designed to strengthen the housing supply in the future.”

Freddie Mac outperformed its FHFA-set affordable housing. Of the 693,000 apartments financed through mortgage loans, more than 420,000 were affordable to low-income households up to 80% of the Area Median Income (AMI), more than 415,000 -unit goal. Affordable units for families with very low incomes up to 50% of AMI totaled nearly 128,000, representing 145% of the 88,000 unit target. Freddie Mac also achieved 118% of its low-income housing for properties of 5 to 50 units with 27,103 units.

Overall, nearly 69% of Freddie Mac Multifamily units qualify as affordable housing, far more than the 50% set by the FHFA. In terms of units financed, 96% of Freddie Mac loans were purchased from affordable units at 120% of AMI, 74.1% affordable units at 80% of AMI, 43.7% affordable units at 60 % of AMI and 22.5% affordable unit support. at 50% of the AMI.

Freddie Mac took action to address the shortage of affordable housing through a record $1.9 billion in forward commitments, supporting 20,000 future new or rehabilitated affordable housing. Forward commitments are agreements to buy loans at a later date with certain financial terms locked in today. The agreements provide greater certainty to home builders and developers by limiting the risks they face when executing complex multi-family transactions in volatile markets. Freddie Mac plans to convert more than 500 forward commitments over the next three years, totaling $8 billion. The company transferred 137 commitments forward to 2022, amounting to $1.7 billion.

Other 2022 awards include:

  • $4.4 billion in Small Balance Loans (SBL; through Freddie Mac’s SBL offerings)
  • $2.7 billion on senior loans (including senior apartments)
  • $1.6 billion on student loans

“The Freddie Mac Multifamily team and our Optigo network® Lenders worked tirelessly to provide stable financing in a turbulent market in 2022,” said Steve Johnson, senior vice president for Production & Sales at Freddie Mac Multifamily. “We brought our Affordable Homes ‘A game,’ to reach new heights and achieve goals that few thought possible in a shrinking market. My sincere thanks and credit goes to our lending network and the Freddie Mac team.”

Freddie Mac too today published its annual list of Optigo’s top investorsincluding leaders in Traditional Lending, Affordable Homes, Small Equity Lending and Senior Housing.

In 2022, Freddie Mac approved $65 billion through many of its offerings, meet a wide range of objectives and complex credit problems to third-party investors.

Freddie Mac makes housing available for millions of families and individuals by providing mortgage capital to borrowers. Since our creation by Congress in 1970, we have made housing easier and more affordable for homebuyers and renters in communities across the country. We’re building a better financial system for homebuyers, renters, lenders and taxpayers. Learn more at FreddieMac.comTwitter @FreddieMac and Freddie Mac’s blog

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