Freddie Mac has announced that it will start purchasing community land trust mortgages as it expands its support for shared-equity homeownership programs that focus on long-term affordability.
The company also announced the promotion of Robert Koontz to senior vice president of multifamily capital markets and a new organizational structure for its multifamily capital markets department.
As part of Freddie Mac’s community land trust mortgage offering, the company has built strategic alliances with national, state, and local community organizations such as the Grounded Solutions Network, City First Enterprises, and the Florida Housing Coalition, among others.
The servicing requirements for the new offering provide shared-equity homeownership with more opportunities and additional time to help borrowers who have missed their mortgage payments. Freddie Mac said the approach will help prevent foreclosures and help organizations exercise their right of first refusal in extreme circumstances to preserve property affordability.
The offering, which Freddie Mac is adopting as part of its Duty to Serve plan, will be available starting Nov. 5.
Meanwhile, Freddie Mac integrated the multifamily investments and advisory and multifamily research and modeling functional areas into the department under Koontz. In his new role, Koontz will oversee these areas, while continuing his core responsibilities, including pricing, structuring, investor relations and sales, and securitization.
“The reorganization of our multifamily capital markets department is an important and necessary change to respond to increased demands on our securitization and portfolio management activities and will enable us to better respond to investor demands and the increased breadth and complexity of our offerings. It will also ensure seamless integration across all areas that touch the capital markets and involve the management and distribution of risk,” said David Brickman, president of Freddie Mac and head of multifamily.