MortgageReal Estate

Freddie Mac posts 13% increase in multifamily originations

Q2 was strong for the GSE, and its multifamily business continues to expand

Freddie Mac posted a 13% increase in multifamily originations in the second quarter, the government-sponsored enterprise reported Tuesday. According to the company, it originated nearly $16 billion in multifamily guarantees in Q2 and increased its interest income from the multifamily by 8%.

Freddie's multifamily segment continues to put up strong performance numbers. Multifamily loans are still exhibiting a functionally non-existent delinquency rate at 0.01%.

Thanks to great performance on its now $220 billion multifamily portfolio, Freddie netted $293 million in interest income in Q2 representing a roughly 8% boost in interest income over last year’s $271 million in interest income.

“Freddie Mac’s transformation continued in the second quarter, with good business results and similarly good financial performance. In business operations, our guarantee book grew significantly, credit quality was high, and we are generating a consistent stream of new innovations for our customers. On the financial side, we produced strong earnings with a growing track record of quarterly stability. These together provide the foundation necessary so Freddie Mac can effectively deliver on all aspects of its mission and, more broadly, improve America's housing finance system,” Freddie Mac CEO Donald Layton said in a statement.

All told, Freddie provided liquidity for approximately 342,000 rental units this year as opposed to 332,000 last year.

Freddie's performance this quarter is indicative of a multifamily industry that is still going strong. Demand remains high thanks to good job growth, high home prices, lifestyle changes and other factors while a constricting pipeline ensures that the demand is funneled into existing units and keeps rents high.

Most Popular Articles

UWM now offering 15-year fixed mortgage rates as low as 1.875%

United Wholesale Mortgage announced Friday that it is rolling out a new loan program that offers borrowers an interest rate as low as 1.875% for both purchase mortgages and refinances.

Jul 31, 2020 By

Latest Articles

Intercontinental Exchange to acquire Ellie Mae from Thoma Bravo for $11 billion

Ellie Mae announced Thursday it entered a definitive agreement to be acquired by Intercontinental Exchange for approximately $11 billion. The move comes 15 months after Thoma Bravo, a private equity investment firm, announced it would acquire Ellie Mae in an all-cash transaction of $3.7 billion.

Aug 06, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please