Freddie Mac Stepping Up Multifamily Loans

From today’s Wall Street Journal:

Freddie Mac plans to accelerate its program to purchase loans backed by apartment buildings, increasing the availability of financing for landlords and helping to bolster the multifamily real-estate market.

Freddie Mac, the government-backed mortgage-finance giant, will likely fund more than $16 billion in apartment-building loans this year, up from $14.8 billion in 2010, said David Brickman, head of multifamily funding for the McLean, Va., company…

The bulk of the loans will be packaged into commercial mortgage-backed securities and sold to investors, which have shown strong demand for CMBS that are issued by government-backed entities such as Freddie Mac and Fannie Mae.

Fannie Mae invested $10.5 billion in the multifamily market for the first half of this year, putting it on track to exceed the $16.9 billion in purchases for last year.