MCLEAN, VA–(Marketwired – Apr 30, 2014) – To provide more capital for affordable rural housing, Freddie Mac (OTCQB: FMCC) Multifamily will begin purchasing and securitizing Manufactured Housing Community (MHC) loans. These will be commercial loans made to the community owners who own the land on which the homes reside.
Quotes attributable to David Brickman, executive vice president of Freddie Mac Multifamily:
- “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.”
- Freddie Mac initially will work with a few established MHC-experienced lenders in its Program Plus® Seller/Servicers network and add additional lenders later this year.
- Eligible properties will be stabilized, high quality, professionally-managed communities owned by experienced operators.
- The collateral securing MHC loans will primarily consist of the community’s land, infrastructure, amenities and any community-owned rentals.
- The primary income securing the mortgage is from pad site rent paid by individuals and homeowners in the communities.
- The loans will be securitized through Multifamily K-Deals along with conventional loans.
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four home borrowers and is one of the largest sources of financing for multifamily housing. Additional information is available at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.
- Real Estate
- Freddie Mac