Freddie Mac has announced its first-ever offering of Structured Pass-Through Certificates (K Certificates) backed only by multifamily mortgages with a seven-year term.
Freddie Mac expects to offer approximately $861 million in K-701 Certificates, which are expected to price next week and settle on or about March 9. The K-701 Certificates are backed by 44 recently originated multifamily mortgages and are guaranteed by Freddie Mac.
‘Because of the strong growth in our multifamily mortgage purchases, we can now tailor securities that segregate our collateral by maturity and provide tighter principal windows to better meet the specific needs of investors,’ says David Brickman, vice president of multifamily CMBS capital markets for Freddie Mac. ‘Going forward, we hope to issue K Certificate securities backed by specific collateral such as five- and 10-year multifamily mortgages.’
SOURCE: Freddie Mac
