Multifamily Aggregation Risk Transfer Certificates (KT Certificates) are backed by multifamily mortgage loans that are awaiting sale into K-Series securitizations. KT Certificates are designed to transfer to certain investors a portion of the risk associated with eligible multifamily mortgage loans prior to sale into a K-Series securitization.
Freddie Mac forms a single trust and sells to the trust eligible mortgage loans. The trust has a revolving period during which Freddie Mac will, from time to time, purchase mortgage loans from the trust for sale into K-Series securitizations. The trust will replace purchased mortgage loans with additional eligible mortgage loans purchased from Freddie Mac.
On the trust settlement date, the trust issues senior guaranteed, mezzanine and first loss certificates. Freddie Mac guarantees timely payment of interest, reimbursement of realized losses and ultimate repayment of principal on the senior guaranteed certificates but does not guarantee the mezzanine or first loss certificates.
The following description is based upon the terms of the Series 2017-KT01 Certificates, which were issued on February 16, 2017. The Series 2017-KT02 were issued on November 29, 2017 and have substantially similar terms, although future issuances of KT Certificates could have substantially different terms.
You will need to enter the KT-Deal Series Number, e.g., KT01.
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