Sulekha community - Advice from neighbors and local experts

New Annual Forward Commitments Allowance Will Help Drive Creation of New Affordable and Workforce Housing Units MCLEAN, Va., Oct. XX, 2X22 (GLOBE NEWSWIRE) -- To help address the national rental housing shortage and affordability crisis, Freddie Mac (OTCQB: FMCC) Multifamily today announced it is ramping up financing that supports newly constructed or substantially rehabilitated multifamily housing. The company will leverage new flexibilities granted by FHFA 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. The agreements provide greater certainty to construction lenders and housing developers by limiting risks they face when executing complex multifamily deals in volatile markets. Freddie Mac proposed greater use of forward commitments in its Equitable Housing Finance Plan. “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, vice president of Production & Sales at Freddie Mac Multifamily. “Our forward commitment program can take some of those concerns off the table, allowing construction lenders, developers, nonprofits, municipalities and others working to support affordable housing to get the math right and move forward. This move will help us add or preserve thousands of affordable multifamily housing units every year.” FHFA previously subjected forward commitments to Freddie Mac’s annual production cap ($X8 billion for 2X22) but will now exempt a certain amount ($X billion for 2X22) of forward commitments from the cap. Separately, FHFA is lifting its $XXX million cap on forward commitments for properties that do not benefit from a Low-Income Housing Tax Credit (non-LIHTC forwards). The company’s non-LIHTC forward business will instead be subject to the annual exemption on forwards, along with LIHTC forwards. Ove