Freddie Mac announced that it will increase financing for newly constructed or heavily rehabbed multifamily housing.
"The company will leverage new flexibilities granted by FHFA that allow for more use of forward commitments, which are agreements to purchase loans at a later date with certain financing terms locked in today," the release said. "The agreements provide greater certainty to construction lenders and housing developers by limiting risks they face when executing complex multifamily deals in volatile markets. Freddie Mac proposed greater use of forward commitments in its Equitable Housing Finance Plan."
Uncertainly is always a problem in any business, including commercial real estate. The condition creates risks and makes it more difficult for a company to plan and arrange suitable financing.
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