Dive Brief:

• Freddie Mac Multifamily named Peter Lillestolen vice president of production and sales of Targeted Affordable Housing last week, according to a press release issued by the government-sponsored enterprise.
• In his new role, Lillestolen will oversee the TAH retail business, low-income housing tax credit equity and structured transactions for both conventional and TAH, as well as senior housing.
• Lillestolen, a 12-year veteran of Freddie Mac, started as an analyst in capital markets and later worked in various leadership roles on the production team at the GSE. Most recently, he led the LIHTC equity and seniors housing businesses while serving as a co-lead for TAH. 

Dive Insight

Lillestolen is stepping into his new role at a pivotal time — when housing affordability issues continue to worsen in the U.S. Historically, more than 90% of the eligible rental units funded by Freddie Mac Multifamily are affordable to families with low to moderate incomes earning up to 120% of area median income. 

Lillestolen helped Freddie Mac exceed its affordable housing goals in 2022, both in the core retail business and low-income housing areas. He was also recently selected as a 2023 Rising Star by HousingWire.

“Peter is a strong, innovative leader, ready to meet the challenges of Multifamily’s mission-critical businesses,” said Steve Johnson, senior vice president for multifamily production and sales, in the press release. “Peter has a proven ability to make strategic, forward-looking decisions and to meet and anticipate the evolving needs of the affordable market.”

Lillestolen’s promotion isn’t the only big change at Freddie Mac over the past couple of years. Last year, the GSE named Kevin Palmer the head of Freddie Mac Multifamily. Palmer, who was vice president for single-family portfolio management before the promotion, has served in a variety of positions at Freddie Mac since 2001.

In the second quarter of this year, the agency’s Multifamily segment reported net income of $563 million dollars, which was a $278 million year-over-year increase for Freddie Mac. Higher non-interest income drove the increase but that was partially offset by a higher provision for credit losses. 

“The provision for credit losses in Multifamily this quarter was $101 million, driven by a credit reserve build due to deterioration in forecasted multifamily market conditions and current loan performance,” said Freddie Mac CFO Chris Lown on the earnings call.

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