McLEAN, VA—Freddie Mac ended 2014 on a strong note, closing $28.3 billion in loan purchase and bond guarantee volume for its multifamily business—a 10% increase from $25.9 billion the previous year. It was the second largest year of multifamily purchases in the company's history.

This year the GSE expects to continue its trajectory of loan originations, plus roll out new or enhanced offerings, David Brickman, executive vice president of Freddie Mac Multifamily, tells GlobeSt.com.

"We project our total business will exceed $30 billion this year, for both capped and uncapped product lines," he said.

Last year the GSE's new business volume reflected $25.8 billion of its $25.9 billion purchase cap for the year that was established by the Federal Housing Finance Agency. New business volume not subject to the FHFA purchase cap totaled $2.5 billion and included certain affordable housing loans, loans for smaller multifamily properties, and loans for manufactured housing communities.

In 2015 Freddie Mac expects it will grow its small balance offering and possibly introduce a acquisition rehabilitation product that is specifically geared to older affordable housing with the intent to preserve, Brickman said.

That product is tentatively scheduled to be unveiled in the middle of the year, he said.

Freddie Mac also expects to further enhance its index lock option, a tool that allows borrowers to lock in mortgage rates earlier in the process, Brickman also says.

Other highlights from the GSE's 2014 performance include:

  • It generated nearly $1.2 billion in total comprehensive income through the first three quarters.
  • It executd 21 multifamily securities offerings for a total volume of $22.4 billion, which, in addition to K-Deals, included Q- and M-Deals.
  • It issued $21.3 billion in K-Deals  and securitized almost $93 billion in multifamily loans since the program started in 2009, backing approximately $79 billion in guaranteed certificates and almost $14 billion in unguaranteed certificates.
  • It settled roughly $2.7 billion in targeted affordable housing business of which approximately $1.4 billion were multifamily bond credit enhancements and Tax-Exempt Bond Securitizations (TEBS). Purchased just over $1.2 billion in seniors housing mortgages.
  • Transacted close to $1.3 billion in student housing loans.
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