Archive

Posts Tagged ‘david brickman’

Manufactured Housing Included in GSE Lending

February 2nd, 2016 Comments off

mortgage app  housingwire creditHitting a record high of nearly $90 billion in multifamily lending in 2015, the government sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, are poised to hit another new lending record this year as their volume lending caps are adjusted by the government.

Freddie Mac topped the two multifamily lenders with $47.3 billion in loan purchase volume, spiking from $28.3 billion in 2014, according to what costar tells MHProNews. Ninety percent of the $42.3 billion in financing provided by Fannie Mae to the multifamily market in 2015 supported 569,000 units of multifamily housing.

Said David Brickman, executive vice president of Freddie Mac Multifamily: Our financing is in every corner of the multifamily market and more diverse than ever, reaching into small balance loans, manufactured housing communities, seniors, student and government subsidized properties. We are focused on increasing the availability of mortgage capital, especially to the affordable and workforce housing sectors where demand continues to far outstrip supply.”

Roughly $17 billion was not subject to the Federal Housing Finance Agency’s $30 billion cap and included loans for manufactured housing, senior housing, affordable housing and smaller multifamily housing.

Of the total 2015 multifamily production, manufactured housing communities accounted for $786 million, an increase of 58 percent over the $496 million in 2014.

Melvin L. Watt, director of the FHFA, says the agency will maintain the $30 billion cap for the GSEs in 2016, and will perform a quarterly review of the market to determine if adjustments are necessary. He said, “We will continue to exclude from the cap loans for affordable properties, including those in higher-cost areas. We will also continue to exclude certain loans for manufactured housing communities, as well as seniors housing and small multifamily properties affordable to low-income tenants.” ##

(Image credit: housingwire)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Government Sponsored Enterprises Grew Multifamily Loans in 2015

January 14th, 2016 Comments off

freddie mac  globest   creditGSEs Fannie Mae and Freddie Mac both increased their multifamily loans and credit enhancements business in 2015, totaling $89.6 billion on the year. Freddie edged out Fannie in volume, with Freddie writing $47.3 billion, a 67 percent increase from 2014’s $28.3 billion, while Fannie reported $42.3 billion, a 46% increase from the $28.9 billion mark set in 2014.

Of Freddie’s new business volume, $17 billion was not subject to the FHFA $30 billion cap and was used for manufactured home loans as well as for senior housing, smaller multifamily projects and affordable housing.

David Brickman, executive vice president for Freddie’s multifamily, said, “Our financing is in every corner of the multifamily market and more diverse than ever. We are focused on increasing the availability of mortgage capital, especially to the affordable and workforce housing sectors where demand continues to far outstrip supply.”

Ninety percent of Freddie Mac loans support rental units for low- and moderate-income households. Further, the majority of the $47 billion purchased in multifamily mortgages were then securitized transferring most of the credit risk from taxpayers to private investors.

At Fannie Mae, Bob Simpson, vice president of affordable, green, and small-loan business at the company, said last year there was considerable growth in in its affordable housing loans.

We rolled out a competitive bridge-loan product this year called the ARM 7-4,” Simpson said in September. “Basically, it provides borrowers with a seven-year, variable-rate loan with a 4% embedded cap. It comes with a one-year lockout, a 1% prepay premium, and a fixed-rate conversion option. We’ve seen a tremendous amount of growth with this product for preservation deals because it provides borrowers with the flexibility of a bridge loan so they can acquire a property and turn it into a tax credit deal a year or two down the road, or they can convert it to a permanent fixed-rate loan if their plans change.” ##

(Photo credit: globest–Freddie Mac headquarters)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Single-family Renter Households more Likely to Buy

September 28th, 2015 Comments off

buy_vs_rent__photobucket__creditA June 2015 Freddie Mac survey reveals that 55 percent of renters of both single-family homes and multifamily homes plan to continue renting in the next three years, although 67 percent of multifamily renters and 60 percent of single-family renters say they are satisfied with their rental experience.

However, 53 percent of single-family renters expect to buy a home within the next three years as opposed to 36 percent of multifamily renters, according to CoStar‘s Mark Heschmeyer, as reported in multifamilyexecutive.

MHProNews has learned that according to U. S. Census Bureau data, there are 15 million household renters and 25 million apartment renters.

As we gather data each quarter, we are finding the old perception that renting is something people do until they buy is not always true. The trend shows that satisfied renters are more likely to continue renting, even as we are seeing rising rents in the market,” said David Brickman, executive vice president of Freddie Mac Multifamily. “Dissatisfaction may drive renters to buy, and we are seeing a slight decrease in satisfaction among single-family renters. We will continue to monitor this for stronger indicators and trends, but for now, the single-family rental home market may be a good place to look to find potential home buyers.

Noting that renter households have increased for the tenth straight year, Brickman adds that households of all ages, sizes and income levels are now renting, and he expects this household formation trend to continue due to the improving economy, Millennials moving into their own homes and immigration. ##

(Image credit: photobucket)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily business News-MHProNews.

Freddie Mac to Work with Experienced MHC Lenders

May 16th, 2014 Comments off

Regarding Freddie Mac’s decision to begin purchasing and securitizing manufactured housing community (MHC) loans as MHProNews.com posted here May 1, 2014, costar.com reports these will be commercial loans made to the community owners. David Brickman, Freddie Mac Multifamily executive vice president, said, “Manufactured housing communities are an affordable housing option for many low-income individuals, especially in rural communities where affordable apartments are less prevalent. Our financing can help to increase debt capital to rural areas and help provide housing options for underserved populations. Nearly half of nation’s manufactured homes are located in rural, non-metropolitan areas.” Initially the government-sponsored enterprise (GSE) will work with experienced MHC lenders and add other lenders farther along. As MHProNews understands, it plans to deal with professionally-managed communities. ##

(Photo credit: TriStar Estates)