Insights from the Freddie Mac Multifamily team.
All Americans have seen their lives affected by the coronavirus in some way. Much has changed with this pandemic, but Freddie Mac's mission has not.
Performance in the multifamily market was strong during 2019 and is expected to remain healthy into 2020, but with the potential for moderated growth in comparison to recent years.
The official start of the Small Balance Loan (SBL) program at Freddie Mac preceded me by about 5 months.
2019 started as a year of change and uncertainty – and we appreciate that these twists and turns were a challenge for all of you, too. But our agility served us well, and now that the fog has lifted, we have a clear strategy forward.
We've proved that our servicing standard is strong and steady - but adaptable to the changing multifamily lending environment. Find out how we're always raising the bar.
In our research, we find that strong economic growth and the robust labor market continue to support the strength in the multifamily market. 2018 ended much stronger than anticipated with near record absorptions and stronger rent growth compared with the prior few years.
Since we launched Optigo℠ earlier this year, the name that once drew many questions has become a natural part of our daily business conversation. We use it every day as we talk about the advantages of our Optigo loans, the reach of our Optigo network and the special relationship between Freddie Mac and Optigo lenders. But we still get many questions about why we created the name and what it stands for.
Recent research shows that an increasing number of multifamily units are not affordable for low- and very low-income households.
We are continually finding new ways to provide liquidity for affordable housing and our Private Placement PC Swap is the latest example.
Rental affordability is a significant challenge for metropolitan statistical areas across the United States. Our research shows that supply just hasn't kept pace with demand in many metros, and that's pushing affordable rents out of reach for millions of American families.
Housing affordability is an uphill battle – but the SBL team will not be deterred.
We had another outstanding year and I encourage all our lenders, servicers, investors, borrowers and staff to enjoy a quick moment of pride from all that we accomplished together.