Freddie Mac Boosts Reserves for More Multifamily Defaults
Mortgage giant Freddie Mac is bracing its reserves for deepening credit stress in the apartment market amid rising delinquencies and an uncertain economic outlook. The government-sponsored enterprise boosted its rainy-day fund by $57 million, citing a steady rise in delinquencies for multifamily mortgages which also include affordable housing projects and senior and student housing. “There’s a housing crisis we’ve never seen before,” said affordable housing expert Mecky Adnani, founder of MAHousing Advisers. The Federal Housing Agency, which insures mortgages to protect lenders from default, has also seen similar strains in the third quarter, reporting serious loan delinquency rates above pre-pandemic levels. The rising delinquencies in multifamily buildings come as part of a wider conversation about lingering inflation and housing affordability in the United States. The shelter category of the consumer price index, a measure of inflation, continues to be a stubbornly large cont...