Freddie Mac, a US government sponsored enterprise, has settled the offering of its Series K-003 Structured Pass-Through Certificates. The K Certificates were offered to large money managers, life insurance companies and pension funds by a network of dealers led by Deutsche Bank Securities..
Mike May, Senior Vice President of Multifamily, said: “The successful completion of this transaction demonstrates Freddie Mac’s unwavering commitment to find new and innovative ways to provide critically-needed liquidity and stability to the country’s multifamily housing finance market. We’re pleased with the positive response from investors and customers to our multifamily securitization efforts. Investor response to the offering was strong and all classes of K Certificates were oversubscribed.”
“This transaction enabled us to reduce our dependence on our balance sheet, redeploy our capital and prudently manage our risk,” he added.
David Brickman, Vice President of Multifamily and CMBS Capital Markets for Freddie Mac, explained that the K Certificates are backed by multifamily mortgages originated through the Freddie Mac Capital Markets Execution(SM) (CME). Mr. Brickman said: “CME offers our customers a more standardized multifamily mortgage product with better pricing. We expect to expand our securities activities and see a growing volume of multifamily loans coming through our CME pipeline.”
