Freddie Mac Offers K Certificates

e Mac has launched its offering of Series K-003 Structured Pass-Through Certificates (K Certificates), multifamily mortgage-backed securities that the company says will provide liquidity, stability and affordability to the multifamily housing market. The K Certificates, which are backed by approximately $1 billion in multifamily mortgage loans originated through Freddie Mac's Capital Markets Execution program, will be offered to the market by a network of dealers led by Deutsche Bank Securities Inc. The certificates are expected to settle in June 2009 and are backed by 62 recently originated multifamily mortgages. Traditionally, multifamily loans have been held solely in Freddie Mac's mortgage-related investments portfolio, but K Certificates provide Freddie Mac a new vehicle to securitize those loans and offer structured guaranteed securities to the market tailored to meet investors' needs, Freddie Mac says. "Freddie Mac is responding to difficult conditions in the multifamily housing financing market by finding innovative ways to link affordable rental housing to the capital markets" says Mike May, Freddie Mac's senior vice president of multifamily. "By offering multifamily loan securitization through our K Certificates, we're providing critically needed support to the multifamily housing market during these difficult economic times." SOURCE: Fred


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