Freddie Mac Brings CharterMac in on Affordable Housing Program

(To read more on the multifamily market, click here.)

WASHINGTON, DC-Freddie Mac has made a move to help supplement the nation’s stable of affordable housing by establishing a new partnership with multifamily financing firm CharterMac Mortgage Capital. The locally based home mortgage buyer committed to bringing the CharterMac subsidiary into its shared-risk program. This will allow CharterMac Mortgage Capital to accelerate the origination of debt financing–or, alternatively, the credit enhancement–for affordable housing projects on behalf of Freddie Mac.

Related Mortgage Capital, which is also a CharterMac subsidiary, will provide the tax credit equity. The arrangement makes CharterMac one of only two Freddie Mac sellers that are presently authorized to underwrite loans for affordable housing projects via the program.

“Freddie Mac’s new shared-risk program with CharterMac Mortgage Capital greatly expands the potential for increased affordable housing loan volume,” says CharterMac Mortgage Capital senior vice president Rachel Diller. “The program also adds a new level of convenience to borrowers, with one shared underwriting platform allowing for expedited executions.” For Freddie Mac, in addition to allowing the company to live up to the government provision that it expand affordable housing underwriting activity, the new partnership provides it with an opportunity to outline best practices methods for future program partners.