More than 8,500 loans in 300+ metros financed since October 2015
MCLEAN, Va., Nov. 05, 2019 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today released an analysis of its Small Balance Loan (SBL) program detailing the success of the program in its first five years. Since being launched in 2014, Freddie Mac has purchased and securitized more than 8,500 small balance loans totaling more than $22.5 billion of original unpaid principal balance (UPB). An average of 94% of SBL units annually have been affordable to households earning at or below the area median income (AMI). The SBL program targets multifamily loans between $1 million and $7.5 million through a network of 12 OptigoSM lenders.
“The SBL program at Freddie Mac is an important source of liquidity for smaller properties that provide affordable housing options to workforce and low-income residents,” said Steve Johnson, vice president of Small Balance Loan Production and Sales at Freddie Mac. “After 5 years, we’ve purchased loans for properties in nearly every state and in more than 300 metro areas. Our team and networks of Optigo lenders and more than 300 investors are devoted to supporting this vital component of multifamily housing, which is critical to our mission-driven work.”
Freddie Mac SBL 5-Year Anniversary Highlights:
- Freddie Mac has funded and securitized over 8,500 small balance loans totaling over $22.5 billion of original UPB with the majority of loans funding in the last two years.
- Freddie Mac has transferred SBL loan credit risk to more than 300 investors through SB-Deals.
- An average of 94% of SBL business annually has been affordable to households making at or below AMI.
- SBL has funded loans in 306 metro areas and 49 states plus the District of Columbia.
- Credit performance for small balance loans has remained strong thanks to consistent underwriting and growing net operating income.
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 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