The year isn’t even over yet, but the Federal Home Loan Mortgage Corp. is already proclaiming 2013 its best year ever for multifamily issuance.
This year’s issuance of multifamily securities by Freddie Mac came in at $28 billion through 19 K-Deals, an announcement Wednesday said.
It was an all-time record for multifamily volume at the McLean, Va.-based company, according to the news release.
In 2012, $21.2 billion in multifamily securities were issued through 17 K-Deals.
The secondary lender has reportedly issued $71.5 billion through 56 K-Deals since the program started in 2009.
This year’s securitizations exceeded multifamily purchases, which the Federal Housing Finance Agency has capped at $26 billion.
Freddie’s private investor base has grown o more than 140 domestic and international investors — including life insurers, banks and investment funds. Some investors assume first loss positions — reducing taxpayer risk.
Freddie noted that 90 percent of the apartment units it financed in 2013 were affordable to households earning the area median income.
Delinquency on K-Deals was just 0.01 percent as of October.
“We look forward to the continued health of the multifamily market and for demand to remain strong in 2014,” Freddie Mac Multifamily Vice President of Loan Pricing and Securitization Mitchell Resnick said in the announcement. “We expect to issue approximately $25 billion in multifamily securities across 15 to 20 K-Deals next year. However, this is dependent upon FHFA’s guidance for 2014, which has not yet been announced.”
Resnick called Freddie “the most prolific issuer of CMBS backed by multifamily mortgages since the market crash in 2009.”
