Freddie Mac Finances 37% of all Multi-family Loans in 2009

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(MCLEAN, VA) -- Freddie Mac (NYSE: FRE) announced today that in 2009 it financed its highest percentage of market share, 37 percent of the overall multifamily market, compared to 29 percent in 2008. Due to a contracting market, Freddie Mac had $16.6 billion in volume for its multifamily whole loan and bond guarantee business (multifamily mortgage settlements), compared to $24 billion in 2008. While the annual production volume declined, 2009 volume represents the 3rd largest volume in Freddie Mac's multifamily history.

This volume includes Freddie Mac's targeted affordable housing products, which finance apartments that receive some form of government subsidy. Freddie Mac's multifamily transactions financed more than 250,000 apartment units, the vast majority of which are affordable to families earning low or moderate incomes.

"During the worst economic recession in a decade, we remained focused on providing liquidity to the market when most other sources were still nowhere to be found in 2009," said Mike May, senior vice president of Multifamily for Freddie Mac. "While the multifamily market has contracted, we continued to finance a good percentage of deals."

Highlights of Freddie Mac's multifamily business in 2009 are:

• $4.6 billion in Capital Markets Execution loan originations;

• Settling approximately $15 billion through Freddie Mac's conventional programs, which included $2.4 billion of conventional structured volume;

• 81 percent of total 2009 conventional settlements were refinances and 16 percent were acquisitions. The remainder were new construction or rehabilitation financing;

• Transacting $1.4 billion in targeted affordable housing products;

• $7.2 billion of the transactions used the Freddie Mac Early Rate-Lock option;

• Purchases of approximately $900 million in seniors housing mortgages;

• Purchases of more than $775 million in student housing mortgages; and

• $5.3 billion in ARM financings, which includes $4.1 billion in Capped ARMS.

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