Freddie Mac Steps Up Use of Forward Commitments to Finance Affordable Units
Freddie Mac Multifamily said it’s ramping up financing that supports newly constructed or substantially rehabilitated multifamily housing. The company will leverage new flexibilities granted by the Federal Housing Finance Agency that allow for more use of forward commitments, which are agreements to purchase loans at a later date with certain financing terms locked in today, providing greater certainty to construction lenders and housing developers.
“One of the most complicated factors in determining how, where and when to build or rehabilitate a multifamily property is market uncertainty, and that’s particularly true right now,” said Steve Johnson, VP of production & sales at Freddie Mac Multifamily. “Our forward commitment program can take some of those concerns off the table.”
FHFA previously subjected forward commitments to Freddie Mac’s annual production cap ($78 billion for 2022) but will now exempt a certain amount ($3 billion for 2022) of forward commitments from the cap.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).
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