Freddie to Offer $1Bn of Multifamily Securitization Certificates
Mortgage giant Freddie Mac (FRE) is offering structured pass-through certificates, or K Certificates, that consist of multifamily mortgage-backed securities (MBS). Freddie expects to offer approximately $1bn of K-004 Certificates, which the company said it anticipates to price on Oct. 7, 2009 and settle on October 22. The K Certificates are backed by 46 newly originated multifamily mortgages guaranteed by Freddie. These K Certificates provide a new securitization vehicle for multifamily loans and a new structured guaranteed securitization to offer to the market. Deutsche Bank Securities and Goldman Sachs will act as co-lead managers and joint book runners on the transaction. Banc of America Securities and JP Morgan Securities will act as co-managers. "Spurred by our successful offering of K Certificates earlier this year, we have a growing and active pipeline of multifamily loans for securitization," said David Brickman, vice president of multifamily and commercial MBS capital markets at Freddie in a statement Wednesday. "In September, this pipeline grew to nearly $3bn, which includes the loans in the current offering," Brickman added. "We expect offerings going forward on at least a quarterly basis, which will enable Freddie Mac to continue to provide even greater liquidity to the multifamily housing market." The announcement Wednesday looks similar to another K Certificates offer settled in June that also involved multifamily MBS. Freddie's most recent K Certificates backed by approximately $1.06bn of multifamily loans that settled on June 18. Write to Diana Golobay.