All About FM and MF

All About FM and MF

1. Multifamily = finance rental housing

   • How? purchase loans from a network of lenders, then securitize loans with 5 or more units
     • funding goes to metro/urban areas, and smaller communities
       • finance properties that hold renters in student, single professionals, families, and senior citizen housing
   • open to help in good and bad times; operate like accordion; expand when funding sources dry up
     • Support AH = main focus of business; almost every loan supports AH; roughly 90 percent of loans /yr support low & moderate income households who earn at or below median income
       • keep financing affordable; helps aging properties; props in need of improvements and smaller communities
         • We PROTECT Taxpayers from Risk
           • How? we securitize loans instead of hold them in our portfolio; we structure K-deals mortgage securities to place private capital in first loss position -- removes credit risk from business and taxpayers.
             • K-Deal = has senior bonds (we guarantee) & subordinate bonds (we don't) -- backed by same loans; S bonds are held by private investors; bears initial loss; creates shock absorber for senior bonds
   • This Year - $10 billion in funding
     • 49% - share o MF mortgage purchase in GSE market
       • 0 credit loses and no REO properties
         • 140,000 apartment units financed this year

2. Purpose: funding, stability, and affordability to country's housing market; keeps money flowing to mortgage lenders; chartered 1970

   • How? purchase loans from lenders to help them build their supply of funds to make more loans to borrowers
     • conservatorship = 2008, help restore confidence