Freddie Mac has announced its first K-P Series offering of multifamily Structured Pass-Through Certificates (K Certificates).
Freddie Mac expects to offer approximately $450 million in K Certificates (K-P01 Certificates), which are expected to settle on or about Oct. 3. The K-P01 Certificates are guaranteed by Freddie Mac and are backed by 28 seasoned multifamily mortgages.
In the K-P Series, Freddie Mac purchases and guarantees all of the securities issued by the related underlying trust. In contrast, previous K Certificate transactions (non-K-P Series) contained some unguaranteed subordinate securities that were placed with third-party investors. Freddie Mac is also serving as special servicer for the related underlying trust, the first time Freddie Mac has served in this capacity in its K Series program.Â
‘This deal represents a departure from previous K-Series transactions because the collateral is comprised of performing, seasoned loans, and we're wrapping the entire structure,’ says Mitch Resnick, vice president of Freddie Mac's multifamily operations. ‘K-P01 will help Freddie Mac continue its commitment to provide liquidity through the secondary mortgage market.’