Wachovia Receives Freddie Mac Fully Delegated Underwriting Status
March 18,
2008
Contact:
corprel@freddiemac.com
or (703) 903-3933
McLean, VA – Freddie Mac (NYSE: FRE) announces that Wachovia Multifamily Capital, Inc. has achieved fully delegated status under the Freddie Mac Delegated Underwriting for Targeted Affordable HousingSM model. Delegated Underwriting allows approved lenders to fully underwrite multifamily loans for Freddie Mac in accordance with its Delegated Underwriting Guide.
"Delegated Underwriting lets us serve targeted affordable borrowers by tapping more effectively into the delegated Seller/Servicers' capacity to originate and underwrite, in exchange for a risk-sharing relationship with us," said Kimball Griffith, Freddie Mac vice president of Affordable Sales and Investments. "We're pleased that Wachovia has been approved to enter into a fully delegated relationship with us."
"Wachovia sees Delegated Underwriting as an extremely valuable tool for our affordable housing activities," said Daniel Cunningham, head of Affordable Housing, Wachovia Multifamily Capital. "We are pleased to enjoy this status with Freddie Mac and believe that it indicates the strength and depth of our relationship. Together through Delegated Underwriting, Wachovia and Freddie Mac will be able to expand our efforts and provide more rapid deployment of capital for the entire spectrum of affordable housing products, including bond credit enhancement, preservation and Low-Income Housing Tax Credit deals of all types."
Delegated lenders first work on receiving initial underwriting authority for loans from Freddie Mac. Then they work to receive fully Delegated Underwriting status.
Since the launching of Freddie Mac's current multifamily business in 1993, Freddie Mac has purchased more than $189 billion in multifamily mortgages, financing rental housing for more than four million families.
Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to support homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible more than 50 million times, ensuring financing for one in six homebuyers and more than four million renters.
Wachovia Corporation (NYSE:WB) is one of the nation's largest diversified financial services companies, with assets of $782.9 billion and market capitalization of $75.3 billion at December 31, 2007. Wachovia provides a broad range of retail banking and brokerage, asset and wealth management, and corporate and investment banking products and services to customers through 3,400 retail financial centers in 21 states from Connecticut to Florida and west to Texas and California, and nationwide retail brokerage, mortgage lending and auto finance businesses. Globally, clients are served in selected corporate and institutional sectors and through more than 40 international offices.
Wachovia's Corporate and Investment Banking group offers a full suite of products and services to public and private companies, institutional investors, financial institutions and the financial sponsor community. Investment banking and the global markets businesses (fixed income and equities) operate under the Wachovia Securities brand and have become a global force in the capital markets arena by providing comprehensive advisory, capital raising, structuring and execution services. Wachovia's Corporate and Investment Bank also includes the 3rd largest Treasury Services business in the U.S., as well as leading asset-based lending and global correspondent banking services. The firm is built on a cohesive culture that encourages creative ideas, capital solutions, and experienced advice to all clients.
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