Freddie Mac Hits 2021 Multifamily Cap with $70.7 Billion in Total Housing Finance Support

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) reported significant achievements in 2021, purchasing $70 billion in loans, reaching the FHFA volume cap. The company financed about 650,000 rental units, with 95% affordable to families earning 120% of area median income or less. Freddie Mac surpassed its mission-driven goals, achieving 57% of volume in that area. Key highlights included $9.6 billion in Targeted Affordable Housing Loans and a record $80.6 billion securitized. The FHFA increased the 2022 cap to $78 billion, maintaining previous mission-driven requirements.

Positive

• $70 billion in loans purchased in 2021
• Financed approximately 650,000 rental units, 95% affordable to low-income families
• Surpassed mission-driven goals with 57% of volume supporting affordable housing
• Achieved $9.6 billion in Targeted Affordable Housing Loans
• Securitized a record $80.6 billion in 2021

Negative

• None.

MCLEAN, Va. , Jan. 13, 2022 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) Multifamily purchased $70 billion in loans in 2021, hitting the FHFA volume cap. The company also made $674 million in Low-Income Housing Tax Credit (LIHTC) equity investments, for a total of $70.7 billion in multifamily housing finance support. Overall, the company financed roughly 650,000 rental units, 95% of which are affordable to families making 120% of area median income (AMI) and below. Freddie Mac also surpassed its goal for supporting units affordable at 60% AMI, with 26% of production volume supporting units affordable by that metric. Approximately 57% of Freddie Mac’s volume qualified as mission-driven, above and beyond the 50% target for the year.

“Freddie Mac Multifamily had an outstanding year, exceeding all our mission-driven benchmarks and providing liquidity throughout the multifamily markets in 2021,” said Richard Martinez, senior vice president for Production & Sales at Freddie Mac. “We have our great network of Optigo lenders to thank and look forward to our continued work together in the year ahead.”

Freddie Mac served all corners of the multifamily market through its range of offerings, including Conventional Loans, Targeted Affordable Housing Loans, Small Balance Loans and Seniors Housing Loans.

Freddie Mac Multifamily 2021 Highlights:

• $9.6 billion in Targeted Affordable Housing Loans
• More than $5.9 billion in Small Balance Loans
• $2 billion in Seniors Housing Loans (including senior-living apartments)
  

Freddie Mac also today published its annual list of top Optigo^® lenders, including leaders in Conventional lending, Targeted Affordable Housing, Small Balance lending and Seniors Housing.

In 2021, Freddie Mac securitized a record $80.6 billion through its many offerings, including K- and SB-Deals®, transferring a large majority of expected and stress credit risk to third-party investors.

The Federal Housing Finance Agency imposes caps on agency multifamily loan purchase volume. FHFA has increased the cap from $70 billion to $78 billion for 2022. The 2022 cap maintains the 50% mission-driven requirement and increases the requirement for supporting units affordable at 60% AMI to 25% of volume — up from 20% in 2021. Mission-driven requirements are governed by Appendix A of the FHFA Multifamily Scorecard.

Freddie Mac Multifamily is the nation's multifamily housing finance leader. Historically, more than 90% of the eligible rental units we fund are affordable to families with low-to-moderate incomes earning up to 120% of area median income. Freddie Mac securitizes about 90% of the multifamily loans it purchases, thus transferring the majority of the expected credit risk from taxpayers to private investors.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.

MEDIA CONTACT: Mike Morosi
(703) 918-5851
Michael_Morosi@FreddieMac.com 

FAQ

What were Freddie Mac's loan purchases in 2021?

Freddie Mac purchased $70 billion in loans in 2021.

How many rental units did Freddie Mac finance in 2021?

Freddie Mac financed approximately 650,000 rental units in 2021.

What percentage of financed units were affordable to low-income families?

95% of the financed units were affordable to families making 120% of area median income or less.

What is Freddie Mac's mission-driven volume for 2021?

Freddie Mac achieved 57% of its volume in mission-driven housing support.

What is the new FHFA multifamily loan purchase cap for 2022?

The FHFA increased the multifamily loan purchase cap from $70 billion to $78 billion for 2022.

How much did Freddie Mac securitize in 2021?

Freddie Mac securitized a record $80.6 billion in 2021.