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Freddie Mac Reports Record Numbers for Multifamily Securities

2013 was a record year for multifamily securities at ""Freddie Mac"":http://www.freddiemac.com/, the GSE reported.


According to a ""release"":http://freddiemac.mwnewsroom.com/press-releases/freddie-mac-has-record-year-for-multifamily-securi-otcqb-fmcc-1075617, Freddie Mac issued a record $28 billion in multifamily securities in 2013 through 19 of its ""K-Deals."" Those figures are up from $21.2 billion through 17 K-Deals in 2012.

Since starting the K-Deals program in 2009, the enterprise has issued an estimated $71.5 billion through 56 deals.

""The primary financing mechanism for the multifamily industry is securitization, and we are the industry leader in that space,"" said Mitchell Resnick, VP of loan pricing and securitization at Freddie Mac Multifamily. ""We are the most prolific issuer of CMBS [commercial mortgage-backed securities] backed by multifamily mortgages since the market crash in 2009.""


With K-Deals to be included in Barclays' Aggregate U.S. and Global Bond indices next June, Freddie Mac expects continued demand in 2014.

""We expect to issue approximately $25 billion in multifamily securities across 15 to 20 K-Deals next year,"" Resnick said, though he noted that next year's volume will be dependent on as-yet unreleased guidance from the Federal Housing Finance Agency (FHFA), Freddie Mac's conservator.

Freddie Mac also celebrated the results of its efforts to reduce taxpayer risk and bring in a private capital base of more than 140 domestic and international investors, including life insurance companies, banks, pension funds, money managers, and hedge funds, some of whom assume first loss positions.

""Freddie Mac is a leader in introducing innovative ways to attract new sources of capital and reduce taxpayer risk,"" Resnick said. ""The success of the Multifamily securities program was an impetus for Freddie Mac to create and issue two Structured Agency Credit Risk (STACR) debt notes transactions in 2013 to further reduce its credit exposure and bring private capital to the residential mortgage market.

""Freddie Mac Multifamily will strive to preserve taxpayer investment in the GSEs while Congress and FHFA decide on a future state for the agency rental housing finance program,"" he finished.


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