Through its multifamily risk transfer platform, Freddie Mac issued an estimated $56 billion worth of securities in 2024, shifting the majority of anticipated credit risk, interest rate risk, and liquidity risk from American taxpayers to private investors. In addition to $22.1 billion in Multi PC issuances during the year, Freddie Mac Multifamily settled $27.7 billion in K-Deals—the company’s flagship offering.
The corporation exceeded the $24 billion milestone in total issuances for its mission-driven Impact Bonds since the program’s launch in 2019 and responded to market demands in 2024 by launching multi-sponsor Q-Deals and Giant PCs, among other innovations.
“In 2024, Freddie Mac Multifamily showed once again how a determined, creative and flexible team can adapt to changing markets to meet the needs of investors and advance our mission,” said Jason Griest, VP of Multifamily Securitization for Freddie Mac.
Multifamily Giant PCs were added to Freddie Mac Multifamily’s securitization platform in 2024, giving investors another re-securitization option to better manage their portfolios and boost potential for mission-driven impact offers. To provide liquidity for small financial institutions, sponsors, and originators of affordable housing across the nation, Freddie Mac also launched multi-sponsor Q-Deals in 2024.
Freddie Mac Implements Actions to Strengthen Investor Needs, Affordability
Freddie Mac Multifamily issued both fixed- and floating-rate bonds through 5-year K-Deals throughout the year in response to borrower and market demands. In order to promote liquidity for both municipal and mortgage-focused investors, the company’s ML-Deal program was further enhanced for 2024 to include the ability to exchange a municipal CUSIP registration for a corporate CUSIP registration and vice versa.
In 2024, Freddie Mac Multifamily issued $4.3 billion in Impact Bonds, surpassing $24 billion in total issuances over the program’s duration, as part of its continued dedication to providing high-quality, reasonably priced rental housing. ML-20, which financed loans securing properties with units that are overwhelmingly affordable and have an environmental impact, was named the 2024 Sustainability Bond of the Year—Agency by Environmental Finance for the third consecutive year.
“We are proud of the progress we made over the past year, especially in a challenging business environment, Griest said. “Working with our Capital Markets stakeholders, we meaningfully enhanced and expanded our platform to better support liquidity, stability and affordability in the multifamily market and for renters in communities nationwide.”
Since the program’s launch in 2009, Freddie Mac has settled $738 billion in multifamily securities through its K-Deal and other risk-transfer products. The company won Deal of the Year for a Single-Asset Single-Borrower deal, K-PLB2, backed by Park La Brea Apartments in Los Angeles, which offers more than 4,200 units of workforce housing, and was named the CMBS Issuer of the Year by GlobalCapital in 2024.
In 2024, the company settled:
- $148.2 million in third-party initiated Giant PCs (re-securitization)
- $27.7 billion in K-Deals, including $2.9 billion through When-Issued K-Deals
- $22.1 billion in Multi PCs, including $832.3 million through newly issued company-initiated Giant PCs and $186.4 million through newly issued company-initiated P-Deals
- $1.5 billion in SB-Deals
- $1.9 billion in M-Deals and ML-Deals
- $2.1 billion in Q-Deals
- $411.6 million in MSCR Notes
- $136.9 million in third-party initiated P-Deals (re-securitization)
Historically, families with low-to-moderate earnings up to 120% of the area median income can afford more than 90% of the eligible rental units we sponsor. More than 90% of the multifamily loans that Freddie Mac buys are securitized, shifting interest-rate risk, liquidity risk, and most of the predicted credit risk from American taxpayers to private investors.
To read the full report, including more data and methodology, click here.
