Fannie, Freddie in Decent Shape on Multifamily?
November 10, 2009
Fannie Mae's $180 billion multifamily (MF) loan portfolio appears to be in decent shape, suffering little in the way of serious delinquencies, according to a new public filing.
In a supplementary report with the Securities and Exchange Commission, Fannie Mae said its MF holdings have a seriously delinquent rate of just 0.62%. It notes that a small percentage of the portfolio has a loan-to-value ratio north of 80%. Moreover, much of the portfolio ($123 billion) matures in 2014 and beyond.
Meanwhile, Freddie Mac, in its recent earnings statement said it is facing additional risk on its MF portfolio because certain MF seller/servicers "are coming under financial pressure."
The GSE cited Capmark Finance, which recently filed for bankruptcy protection, and Centerline Holding Co., which is in the process of restructuring its debt.
However, Freddie Mac noted that its "counterparty risk" to these companies is minimal, adding "we have not incurred any losses."
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