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.
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 credit risk associated with eligible multifamily mortgage loans prior to sale into K-Series securitization.
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).
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.
In SB Certificates, 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.
Multifamily Structured Credit Risk Notes (SCR Notes) are unsecured and unguaranteed Freddie Mac corporate debt. They are subject to the credit risk of an identified pool of multifamily mortgage loans for which we provide credit enhancement for the related multifamily bonds issued by state and local housing finance agencies.
Multifamily SR Certificates are backed by mortgages secured primarily by Single-Family Rental housing properties (SFR Loans). Generally, SFR Loans range from $10 million—$250 million and are underwritten by Freddie Mac at the time of origination for sale to Freddie Mac by a specialty network of Lenders or SFR lenders.