Freddie Mac · OTC:FMCC
Freddie Mac — Investor Presentation (June 2019)
15 slides from Freddie Mac's investor presentation, Jun 30, 2019
Slide 1: Multifamily Securitization Workforce Housing
Multifamily Securitization Workforce Housing As of June 30, 2019
Slide 2: Workforce Housing Overview
Workforce Housing Overview 2
Slide 3: The Housing Challenge
The Housing Challenge The need for adequate, affordable rental housing is greater than ever. The demand for this type of housing is strong near major employment centers where the cost of housing is especially high. Workforce housing is Why Is Workforce Housing Important? essential for our Provides h
Slide 4: What Is Workforce Housing?
What Is Workforce Housing? General Workforce Housing Guidelines Multifamily housing Property Characteristics Rent that is affordable Typically Class B or C multifamily properties Workforce housing rent is less than to the majority of that were constructed before 2000 average market rent for the area
Slide 5: Where Is Workforce Housing?
Where Is Workforce Housing? Residents are “rent burdened” Everywhere in the country with 30-50% of ▪ Urban core with a diverse employment base income allocated to ▪ Suburban locations with above average commutes housing when ▪ Locations with key employer dependency living in major employment ▪ Areas
Slide 6: Who Lives in Workforce Housing?
Who Lives in Workforce Housing? Renters with vital community service occupations, hourly employees, unsubsidized renters with low incomes, cost-burdened renters and priced-out aspiring homebuyers The average national rent is Nearly 75% of renters make less than $50,000 a year. The median $1,4121. As
Slide 7: Financing Affordable Units
Financing Affordable Units 94% of the eligible units we financed in 1H 2019 were affordable to households earning at or below 120% of the area median income (AMI) Multifamily Funded Units by AMI 2017 – Q2 2019 How Do We Support It? We help property owners/developers buy, refinance and preserve multi
Slide 8: Workforce Securitization Overview
Workforce Securitization Overview 8
Slide 9: K-W Securitization Program Overview
K-W Securitization Program Overview Freddie Mac Multifamily announced the addition of K-W Deals (exclusively workforce housing) to its K-Deal℠ platform in May 2016. Eight deals have been issued through this shelf, representing $5.2 billion, and total issuance volume has increased annually since 2016
Slide 10: K-W08 Transaction Highlights
K-W08 Transaction Highlights Overview of Deal Structure (Pricing Date: March 19, 2019) Structural Diagram Assumed Freddie Initial Principal or Weighted Mac SPC Class Notional Amount Pricing Spread Average Life Trust, Investors Offered K-W08 Certificates: Classes Series (including A-1, A-2, K-W08 A-1
Slide 11: K-W Deals Performance
K-W Deals Performance The KW-Deal program performance continues to be strong ▪ 100% of the K-W Deal loans are current ▪ None of the loans are in special servicing or REO ▪ Freddie Mac has not realized any credit losses on KW-Deal guarantees ▪ 14% of the outstanding loan population (by outstanding pr
Slide 12: Workforce Research Overview
Workforce Research Overview 12
Slide 13: Robust Research to Monitor Market Trends
Robust Research to Monitor Market Trends Proprietary Research Podcasts Links to more research on our website Multifamily 2019 Midyear Outlook The Diminishing Supply of Affordable Units In the News Increasing Support for Opportunity Zones How Will the Tax Cuts and Jobs Act Impact Real Estate? Assessi
Slide 14: through applicable offering circulars and related supplements, which incorporate Freddie Mac’s Annual Report on
This product overview is not an offer to sell or a solicitation of an offer to buy any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac’s Annual Report on Form 10-K and certain other repor
Slide 15: MULTIFAMILY SECURITIZATION WORKFORCE HOUSING © FREDDIE MAC
MULTIFAMILY SECURITIZATION WORKFORCE HOUSING © FREDDIE MAC