Walker & Dunlop is partnering with Freddie Mac to bolster its affordable single-family rental pilot program. The program offers additional financing options for workforce and affordable rental housing in one to four-unit buildings.
“We are thrilled to partner with Freddie Mac to increase the availability of affordable rental housing for America’s working families,” Walker & Dunlop Chairman and CEO Willy Walker said in a statement.
“Walker & Dunlop has expertise in single-family rental lending, and we look forward to offering our customers best-in-class execution of the program and further enhancing our offering in the SFR space,” he added.
Walker & Dunlop’s SFR team of Executive Vice President and Chief Credit Officer Richard Warner, Chief Production Officer Ted Patch, Senior Vice President and Treasurer Mitchell Resnick and Senior Vice President of Capital Markets Gabe Weinert will focus on providing loans to middle markets with an average loan size of between $10 million and $25 million, according to the press release.
“Increasing the availability of affordable rental housing across the United States is the top priority for Freddie Mac’s affordable single-family rental pilot,” Freddie Mac Multifamily Vice President of Targeted Affordable Sales and Investments David Leopold said in a statement.
“Given Walker & Dunlop’s experience in this space and their ranking as the second-largest affordable multifamily lender in the country, we are pleased to have them as one of our partners in this process.”
According to Walker & Dunlop’s release, SFR has been the fastest-growing segment of the housing market since the financial crisis. SFR accounts for 35% of the country’s 44 million units. In 2006, the percentage was 31% of all rental units. Demographic changes and evolving household preferences will continue to drive the increase in demand for SFR product.
Freddie Mac’s SFR program is meant to meet this growing demand pool, and along with Walker & Dunlop, the government-sponsored enterprise has selected eight other firms for the pilot program: A10 Capital, Arbor, Berkadia, CBRE, CoreVest, Holliday Fenoglio Fowler, Key Bank and Wells Fargo.