Freddie Mac plans to offer $1.37 billion in K certificates – or multifamily mortgage-backed securities – on or around July 11, the enterprise said Monday.
The latest deal brings Freddie’s total offering on the multifamily side to $57 billion in four years time when dating the K program back to 2009.
The more recent K-certificates up for grabs are collateralized by 87 newly originated multifamily mortgages. In addition, the certificates are guaranteed by Freddie Mac.
"We are achieving the K program's main goal of attracting private capital to the market by placing the subordinate classes with third party investors," said Mitchell Resnick, vice president of Freddie Mac multifamily loan pricing and securitization. "This structure has allowed Freddie Mac to dramatically reduce its risk and use its guarantee to only insure the transactions' senior portion."