Less than two years after launching the GSE platform (and one year after Walker & Dunlop originated the first loan through it), Freddie Mac has purchased $1B in manufactured housing loans, the GSE announced.
Now, Freddie Mac Multifamily is looking to deepen the program, VP Kelly Brady told Globe Street, by looking at ways it can help maintain the existing manufactured housing stock.
"The amount of liquidity we are providing is already significant and we don't want to oversaturate the market," Kelly says.
Freddie Mac is considering lending to unstable or low occupancy developments or partially developed projects. It's easier to finish a project already zoned for manufactured housing, Kelly says.
Demand will be even stronger in the wake of GE Capital ending its financial operations, Kelly says. "There were many borrowers left holding commitments that were voided by GE," she explains. "GE exiting the market left a fairly significant gap."
By bringing much-needed liquidity to the industry, Freddie Mac has more wiggle room for experimentation. Kelly says investors were happy with the "credit and security of the cash flow" when they began folding these loans into its K-deals at the end of last year. [GS]
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