K-Deals feature a range of investor options with stable cash flows and a structured credit enhancement. K-Deals include guaranteed senior and interest only classes. The related underlying private label trust includes unguaranteed mezzanine, subordinate and interest only bonds.
Freddie Mac works diligently to manage the terms and credit quality of the underlying loans and the composition of the securities.
Freddie Mac securitizes Multifamily loans via the K Certificate structure through the following steps:
K Certificates feature loans with various terms:
Strong credit provided by the Freddie Mac guarantee plus the additional credit support of an underlying multifamily mortgage pool underwritten to Freddie Mac’s portfolio standards.
Diversification through pooled risk of many assets versus single asset risk unless otherwise indicated.
Call protection associated with the prepayment features of defeasance or yield maintenance or static prepayment premiums.
Rated bonds, may include guaranteed senior bonds privately rated at securitization, without taking into account the Freddie Mac guarantee; and non Freddie Mac- issued unguaranteed mezzanine bonds publicly rated at securitization and throughout the term.
Transparency and consistency on collateral and deal information through the offering documents.
Liquidity that is supported by repeatable and reliable issuance.
Guarantee of timely payment of interest and ultimate payment of principal on the guaranteed certificates.
Find the below items on the Lookup Tools page.
You will need to enter the K-Deal Series Number, e.g., K006. For Factors & Coupons, you will also need to enter the Class ID, e.g., A1.