Small Properties Present Big Opportunities, New Research Finds
Steve Guggenmos, VP Research & Modeling
Close to one-third of renters live in smaller properties with five to 50 units, many of which are affordable to low- and very low-income households. Given the importance of this housing segment, our latest Multifamily Research Perspectives report examines lending aimed at smaller properties and loan balances of $1 million to $5 million – or small balance loans (SBLs).
The report busts some myths about the risks of SBLs and explores challenges that the industry has faced in this area. It also considers the past and potential future involvement of the secondary mortgage market, particularly the government-sponsored enterprises (GSEs). And it describes how Freddie Mac Multifamily is tackling some of the long-standing challenges. The goal: Increase liquidity, stability, and consistency across this vital segment.
Read our “Small Balance Loans” research report for these details and more.
Learn about Freddie Mac Multifamily’s SBL offering on our web site.
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Viewpoints
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Jan 13, 2020Multifamily 2020 Outlook
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About This Author
Steve Guggenmos
VP Research & Modeling
Steve leads multifamily related research at Freddie Mac. In this role he performs research related to national and market-specific multifamily conditions. His team supports the multifamily business by developing models and quantitative approaches that determine risk-based capital allocations. The models capture loan level risks and also the benefits of the diversification and structural credit support for pools of multifamily mortgages, supporting the core business strategies of Freddie Mac Multifamily.
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