Freddie Mac 2015 Annual Report Download - page 62

Management's Discussion and Analysis Our Business Segments | Multifamily
Freddie Mac 2015 Form 10-K 60
Multifamily Mortgage Debt Outstanding as of
December 31,
Source: Federal Reserve Financial Accounts of the United
States of America dated December 10, 2015. For 2015, the
amount is as of September 30, 2015 (latest available
information).
Multifamily Delinquency Rates as of
December 31,
Source: Freddie Mac, FDIC Quarterly Banking Profile,
Trepp, LLC. (MF CMBS market, excluding REOs), American
Council of Life Insurers (ACLI). For 2015, the amounts for
FDIC insured institutions and ACLI investment bulletin are as
of September 30, 2015 (latest available information).
Commentary
• There was significant growth in the multifamily market during 2015. As reported by the Federal
Reserve, total multifamily mortgage debt outstanding was approximately $1.1 trillion at September 30,
2015 (the latest available information), representing an increase of $95.0 billion (or 10%) since
September 30, 2014, one of the largest annual increases ever reported by the Federal Reserve.
• Our share of multifamily mortgage debt outstanding has remained relatively stable over the past
several years in the 12-14% range.
• Our multifamily delinquency rates during 2015 remained among the lowest in the industry, primarily
due to our prior-approval underwriting approach discussed earlier.
• We expect continued growth in the multifamily mortgage market due to increasing property prices and
new completions, along with favorable investment opportunities. In addition, we expect to maintain
our share of multifamily mortgage debt outstanding in 2016.
• We expect the credit losses and delinquency rates for the multifamily mortgage portfolio to remain low
in the near term.