We consistently offer high-grade Multifamily securities. Our signature product is the K-Deal®, which is a regularly-issued structured pass-through security backed by Multifamily mortgage loans. We continue to add new risk transfer vehicles that complement our K-Deals.
Multifamily K Certificates® are regularly-issued, structured pass-through securities backed by recently-originated multifamily mortgage loans. 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.
In SB CertificatesSM, Freddie Mac guarantees senior classes of securities issued by third-party trusts backed by Multifamily Small Balance Loans (SBLs). SBLs generally range from $1 million-$6 million and have five or more units.
M Certificates are tax-exempt and taxable securities supported by pools of unenhanced tax-exempt and taxable multifamily housing collateral. Class A M Certificates offer our guarantee of timely payment of interest and scheduled principal. ML Certificates are uniquely positioned as a more efficient and cost-effective alternative to financing stabilized affordable multifamily properties with 4% Low-Income Housing Tax Credits (LIHTC).
We issue 55-day Participation Certificates (PCs) called Multi PCs® that offer the Freddie Mac guarantee of timely payment of interest and scheduled principal for Fixed-Rate PCs and timely payment of interest and full and final payment of principal. Multi PCs are backed by mortgages that are secured by structures with five or more units, principally for residential use, with terms generally ranging from five to 50 years. TEL Multi PCs are backed by tax-exempt loans (TELs).
When-Issued Trust certificates are bonds that offer investors a funded method to purchase certain K-Deal certificates in advance of the K-Deal settlement, while earning a guaranteed coupon. Through this program, investors have a funded way to purchase certain K-Deal certificates before K-Deal settlement.
Multifamily Structured Credit Risk Notes (MSCR Notes) are unguaranteed securities designed to transfer to investors a portion of the credit risk associated with eligible multifamily mortgages linked to a reference pool, thereby reducing U.S. taxpayers’ exposure to mortgage default risk.
Multifamily Q Certificates are structured pass-through securities backed by multifamily mortgage loans. Unlike K Certificates, Q Certificates are backed by an underlying trust that holds multifamily mortgage loans that were not underwritten by Freddie Mac at the time they were originated, and the loans may not have been purchased by Freddie Mac prior to securitization.
Multifamily Real Estate Mortgage Investment Conduits (REMICs) are flexible tools that support the liquidity of our structured pass-through certificates and participation certificates while offering dealers and investors an advantageous REMIC structuring option with a Freddie Mac guarantee.