Freddie Mac Multifamily Issued $56 Billion in 2024 Securities

Rhea-AI Summary

Freddie Mac Multifamily issued $56 billion in securities through its multifamily risk transfer platform in 2024, effectively transferring various risks from U.S. taxpayers to private investors. The company settled $27.7 billion in K-Deals and $22.1 billion in Multi PC issuances.

Key developments in 2024 included the introduction of Giant PCs and multi-sponsor Q-Deals, along with reaching $24 billion in total Impact Bond issuances since 2019. The company issued $4.3 billion of Impact Bonds in 2024 alone, demonstrating its commitment to affordable housing.

Notable achievements include winning GlobalCapital's CMBS Issuer of the Year award and Environmental Finance's Sustainability Bond of the Year for ML-20. Since 2009, Freddie Mac has settled $738 billion in Multifamily securities through various risk-transfer offerings, with over 90% of eligible rental units funded being affordable to families with low-to-moderate incomes.

Positive

• Issued $56 billion in securities, maintaining strong market presence
• Reached $24 billion milestone in Impact Bond issuances since 2019
• Introduced new products (Giant PCs and multi-sponsor Q-Deals) expanding market reach
• Won CMBS Issuer of the Year and Sustainability Bond of the Year awards
• 90% of funded rental units are affordable to low-to-moderate income families

Negative

• None.

Company brought new flexibility to meet investor needs and increase liquidity, stability, affordability in multifamily market

MCLEAN, Va., Jan. 10, 2025 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) issued $56 billion of securities through its multifamily risk transfer platform in 2024, transferring interest rate risk, liquidity risk and the majority of expected credit risk away from U.S. taxpayers to private investors. A leading issuer of multifamily securities, Freddie Mac Multifamily settled $27.7 billion in K-Deals®, the company’s signature offering, along with $22.1 billion in Multi PC® issuances over the year. In 2024, the company adapted to meet market demands by introducing Giant PCs and multi-sponsor Q-Deals, along with other innovations, and surpassed the milestone of $24 billion in total issuances for its mission-driven Impact Bonds since the program’s inception in 2019.

“In 2024, Freddie Mac Multifamily showed once again how a determined, creative and flexible team can adapt to changing markets to meet the needs of investors and advance our mission,” said Jason Griest, vice president of Multifamily Securitization for Freddie Mac. “We are proud of the progress we made over the past year, especially in a challenging business environment. Working with our Capital Markets stakeholders, we meaningfully enhanced and expanded our platform to better support liquidity, stability and affordability in the multifamily market and for renters in communities nationwide.”

In 2024, Freddie Mac Multifamily expanded its capabilities by adding Multifamily Giant PCs to its securitization platform, offering investors an additional re-securitization capability to manage their portfolios more efficiently and increase opportunities for mission-driven impact offerings. In addition, Freddie Mac introduced multi-sponsor Q-Deals in 2024 to expand access to liquidity for small financial institutions, sponsors and originators supporting affordable housing around the country.

Over the course of the year, Freddie Mac Multifamily adapted to borrower and market demands by issuing both fixed- and floating-rate bonds via 5-year K-Deals. Also new for 2024 was an enhancement to the company’s ML-Deal® program that created the capacity to exchange a municipal CUSIP registration for a corporate CUSIP registration, and vice versa, to provide increased liquidity for both municipal and mortgage-focused investors.
  
As part of Freddie Mac Multifamily’s ongoing commitment to affordable, quality rental housing, the company issued $4.3 billion of Impact Bonds in 2024, surpassing $24 billion in total issuances over the life of the program. The company was recognized for the third year in a row by Environmental Finance, earning the 2024 Sustainability Bond of the Year – Agency for ML-20, which financed loans securing properties with units that are overwhelmingly affordable and have an environmental impact.

Freddie Mac has settled $738 billion in Multifamily securities through its K-Deal and various other risk-transfer offerings since the inception of the program in 2009. In 2024, the company was recognized by GlobalCapital as the CMBS Issuer of the Year and was awarded Deal of the Year for a Single-Asset Single-Borrower transaction, K-PLB2, backed by Park La Brea Apartments in Los Angeles, which provides more than 4,200 units of workforce housing.

In 2024, the company settled:

• $27.7 billion in K-Deals, including $2.9 billion through When-Issued K-Deals
• $22.1 billion in Multi PCs, including $832.3 million through newly issued company-initiated Giant PCs and $186.4 million through newly issued company-initiated P-Deals
• $1.5 billion in SB-Deals®
• $1.9 billion in M-Deals and ML-Deals
• $2.1 billion in Q-Deals
• $411.6 million in MSCR Notes
• $136.9 million in third-party initiated P-Deals (re-securitization)
• $148.2 million in third-party initiated Giant PCs (re-securitization)

Freddie Mac Multifamily is a national 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 securitizes more than 90% of the multifamily loans it purchases, transferring interest-rate risk, liquidity risk, and the majority of expected credit risk away from U.S. taxpayers to private investors.

Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website | Consumers | Twitter | LinkedIn | Facebook | Instagram | YouTube

MEDIA CONTACT: Melissa Silverman
703-388-7037
Melissa_Silverman@FreddieMac.com

FAQ

How much did Freddie Mac (FMCC) issue in multifamily securities in 2024?

Freddie Mac issued $56 billion in securities through its multifamily risk transfer platform in 2024.

What was the value of K-Deals settled by FMCC in 2024?

Freddie Mac settled $27.7 billion in K-Deals during 2024, including $2.9 billion through When-Issued K-Deals.

How much has FMCC issued in Impact Bonds since the program's inception?

Freddie Mac has issued over $24 billion in Impact Bonds since the program's inception in 2019, with $4.3 billion issued in 2024.

What new products did Freddie Mac (FMCC) introduce in 2024?

In 2024, Freddie Mac introduced Multifamily Giant PCs and multi-sponsor Q-Deals to its securitization platform.

What percentage of FMCC's eligible rental units are affordable housing?

Historically, more than 90% of Freddie Mac's eligible rental units are affordable to families with low-to-moderate incomes earning up to 120% of area median income.