Freddie Mac Supported Industry With $28.8 Billion in 2012 Multifamily Volumes

Freddie Mac Supported Industry With $28.8 Billion in 2012 Multifamily Volumes 
MCLEAN, VA -- (Marketwire) -- 01/30/13 --  Freddie Mac (OTCBB: FMCC)
announced today that it had a record $28.8 billion in volume for its
multifamily business (loan purchase and bond guarantee volume), a 42
percent increase compared to $20.3 billion in 2011. The previous
multifamily business activity record was $24 billion in 2008. This
volume includes Freddie Mac's targeted affordable housing products,
which finance apartments that receive some form of local, state or
federal government subsidy.  
Quotes from David Brickman, senior vice president of Freddie Mac

--  "It was a phenomenal year for us and the sellers and servicers in our
    network. We achieved record volume while maintaining strong credit
    discipline and providing essential liquidity to the growing
    multifamily mortgage market. In the fourth quarter we completed about
    33 percent of our yearly volume -- approximately $10 billion in
    multifamily mortgages."
--  "Our K-Deal issuance increased 55 percent this year. We are now in the
    securitization market every day with new issuances every two to three
    weeks. In the four years since the program's inception, we've
    securitized $44 billion in mortgages backed by 5-, 7- and 10-year
    collateral, as well as floating rate mortgages. We anticipate an
    increase in securitizations this year with 10-year mortgage loans
    being the predominant loan type as borrowers lock-in the low interest
--  "Multifamily is a profitable business line for Freddie Mac, and has
    produced nearly $4 billion in segment earnings since 2010. This
    includes $1.65 billion in the first nine months of 2012." (Fourth
    quarter 2012 earnings data has not been released).

Freddie Mac Multifamily 2012 business highlights: 

--  A record-breaking year for Freddie Mac's Capital Markets Execution(SM)
    (CME) program, settling $25 billion, or 88 percent of the total new
    purchase volume;
--  Securitizing $21.2 billion in CME mortgages underlying 17 new K
    Certificate transactions with our guarantee of the Series A
    certificates totaling $17.9 billion;
--  54 percent of the total
 2012 loan purchases or credit enhancements
    were refinances and 40 percent were acquisitions;
--  Settling roughly $3 billion in targeted affordable housing products of
    which approximately $2.4 billion were multifamily bond credit
--  Purchasing about $650 million in seniors housing mortgages;
--  Purchasing more than $1.7 billion in student housing mortgages;
--  The lowest delinquency rate in two years of 19 basis points as of
    December 31, 2012. (Delinquencies are based on the unpaid principal
    balance of mortgage loans that are two or more monthly payments past
    due or in the process of foreclosure.);
--  Provided financing for over 1,600 properties amounting to more than
    435,000 apartment units, of which the majority are affordable to
    families earning low or moderate incomes;
--  Increased transparency by disclosing CME loan settlement volume
    comparing original LTV to LTV at maturity, and launched the Mortgage
    Securities Investor Access tool for investors to monitor K-Deal
    performance and conduct credit analysis; and
--  Achieved a commercial mortgage-backed securities (CMBS) special
    servicer rating of "CSS2-" from Fitch.

Click here to read the 2011 business volume press release. 
Since the launch of Freddie Mac's multifamily business in 1993, it
has provided more than $290 billion in financing for about 60,000
multifamily properties. 
Freddie Mac was established by Congress in 1970 to provide liquidity,
stability and affordability to the nation's residential mortgage
markets. Freddie Mac supports communities across the nation by
providing mortgage capital to lenders. Today Freddie Mac is making
home possible for one in four homebuyers and is one of the largest
sources of financing for multifamily housing.
Twitter: @FreddieMac 
Patti Boerger
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