For the second year in a row, the Federal Home Loan Mortgage Corp. has reported securitizing a record level of apartment loans.
During all of 2017, the issuance of multifamily securities by the McLean, Virginia-based secondary mortgage lender amounted to $68 billion.
Last year’s multifamily issuance, which turned out to be an all-time record
for Freddie Mac, was up from $51.2 billion in 2016 — also a record at the time.
The announcement indicated that securitizations of apartment loans effectively transfers the majority of risk from taxpayers to private investors.
Last year’s securitizations included more than $56.7 billion in K-Deals, $5.5 billion in SB-Deals, $2.0 billion KT-Deals and $0.7 billion in ML-Deals. Also included were more than $3.2 billion in
Q-Deals, M-Deals, participation certificates, SR-Deals and SCR Notes.
“Thanks to strong support from our investors, and the dedicated Freddie Mac staff, our flagship K- and SB-Deals both had exceptional years,” David Brickman, executive vice president and head of multifamily, said in the statement. “In 2017, we continued to build on that success with new securitization and risk-transfer vehicles that helped us adapt to changing investor demands, lowered the cost of capital for properties and, as a result, made renting more affordable.”
Brickman added that
several new offerings are anticipated for this year.
