Source: Freddie Mac / #Finance #RealEstate
MCLEAN, VA - Freddie Mac recently priced a new offering of Structured Pass-Through Certificates, which are multifamily mortgage-backed securities. The approximately $1.1 billion in K Certificates are expected settle on or about September 18, 2014. This is Freddie Mac's tenth K Certificates offering this year.
The K-039 Certificates are backed by corresponding classes issued by the FREMF 2014-K39 Mortgage Trust ("K-39 Trust") and guaranteed by Freddie Mac. The K-39 Trust will also issue certificates consisting of the Class B, C, D, X2-A, X2-B and R Certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-039 Certificates.
The K-039 transaction launches enhancements to Freddie Mac's servicing standard which improves the alignment of securitization party interests as well as the consistency, quality and speed of borrower transactions.
Freddie Mac Multifamily is a leading issuer of agency-guaranteed structured multifamily securities. K-Deals are part of the company's business strategy to transfer a portion of the risk of losses away from taxpayers and to private investors who purchase the unguaranteed subordinate bonds. K Certificates typically feature a wide range of investor options with stable cash flows and structured credit enhancement.
The preliminary offering circular supplement relating to the K-039 Certificates can be found at FreddieMac.com. A Freddie Mac multifamily investor presentation on the K Certificates deal structure and multifamily loan portfolio performance data is available at FreddieMac.com. Freddie Mac also has an online tool for investors and analysts, Multifamily Securities Investor Access. This is a central database that houses all post-securitization data from Investor Reporting Packages to help investors and analysts monitor K-Deal performance.