Freddie Launches 'Targeted AH' Network

Freddie Mac has established a Multifamily Targeted Affordable Seller/Servicer network that it says is aimed at boosting its purchases of mortgages that finance "targeted affordable housing."Targeted affordable housing loans include mortgages on properties that receive federal subsidies or are subject to low-income housing tax credits, and transactions in which Freddie Mac provides credit enhancement for a mortgage that backs tax-exempt bonds, a trust certificate, or related instruments. The first companies approved as network members are GMAC Commercial Mortgage Corp., MMA Financial Services, PNC Multifamily Capital, and PW Funding Inc. "Working closely with this special network of seller/servicers will enhance our ability to find new and innovative ways to support affordable housing," said H. L. "Van" Van Varick, vice president in charge of targeted AH initiatives in Freddie's Multifamily Division. "We are willing to consider giving nationwide approval for targeted affordable loans to other companies if they have the capability, experience, and committed resources needed to provide one-stop shopping for targeted affordable developers, which includes construction lending and debt and equity financing."