Another Record-Setting Year as Freddie Mac Maintains Position as Multifamily Leader in Transferring Risk
MCLEAN, Va., Jan. 03, 2019 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today announced it issued $72.8 billion of multifamily securities in 2018. The record-setting figure demonstrates Freddie Mac’s continued industry leadership in risk transfer using innovative securities to move risk from taxpayers to private investors.
“With our diverse array of securities, including our flagship K Deals, we continue pioneering efforts to meet private sector demand for investment products while shifting risk away from taxpayers,” said Debby Jenkins, executive vice president and head of Freddie Mac Multifamily. “Our broad issuance platform had another outstanding year. As we look to the future, we’re going to continue pushing for more innovations that can lower capital cost for borrowers, making rental housing more affordable.”
Contributing to the $72.8 billion total securitization, the company settled:
- $61.6 billion in K Deals
- $7.0 billion in SB Deals
- $4.2 billion in KT Deals, PCs, Q Deals, M Deals, and ML Deals.
Freddie Mac Multifamily’s securitization program moves the vast majority of risk away from the company and taxpayers to private investors. The Federal Housing Finance Agency’s second quarter 2018 Credit Risk Transfer Progress Report found that through the first half of 2018, Freddie Mac has transferred 86 percent of its multifamily credit risk.
“With another record-setting year, Freddie Mac continues to set the pace for the industry when it comes to securitization,” said Robert Koontz, senior vice president of Multifamily Capital Markets. “The volume totals speak for themselves. After nearly a decade of K Series transactions and years of experience with several other well-tested offerings, we continue to lead the industry in product innovation and risk transfer. We are extremely proud of our investor base and outstanding staff – both are without parallel.”
In 2018, 347 different investors participated in Freddie Mac's K and SB Deal programs, including 241 in the K Deal program and 161 in the SB Deal program. An average of nearly 27 investors participated in each K and SB Deal. Since the inception of the modern K Deal in 2009, the company securitized a total of $329.6 billion across all offerings, including $294 billion in K Deals and $18.2 billion in SB Deals. Since 2009, 719 different investors have participated in Freddie Mac's K and SB Deal programs, including 546 in the K Deal program and 292 in the SB Deal program.
Freddie Mac Multifamily is the nation's multifamily housing finance leader. Historically, nearly 90 percent of the eligible rental units we fund are affordable to families with low-to-moderate incomes.
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