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Multifamily Viewpoints

We’ve Surpassed $200 Billion!

By Robert Koontz
Published on June 6, 2017

Today, we reached an important milestone in the history of Freddie Mac Multifamily securitizations — surpassing the $200 billion mark for K- and SB-Deal issuances. This major achievement was built on a foundation of solid credit, expanding liquidity, and a strong and growing Investor base, with the help of our talented Freddie Mac Multifamily staff.

Investor demand has been considerable and continues to increase. Overall, we’ve worked with nearly 590 Investors.  Last year, more than 250 Investors participated in the K-Deal program, with an average of 26 different Investors on each deal, and 115 Investors participated in the SB-Deal program. Spreads remain competitive. 

From the perspective of credit quality, over 99.9 percent of the unpaid balances associated with loans in K- and SB-Deals are current and we have not realized any credit losses on our K- and SB-Deal guarantees since the beginning of the program in 2009.

Innovation Brought Us a Long Way

We’ve Surpassed $200 Billion!

We led the way with our first K-Deal comprising solely 10-year fixed-rate loans. Since then the program has grown not only in volume, but also in the type of loans and properties in the securitizations.

Today’s securitizations include a variety of loans — fixed, floating, seasoned, supplemental, single sponsor, small balance; and a variety of terms — 5-, 7-, 10- and 15-year.

Everyone Wins

From renters and communities across the country, property developers, owners and Borrowers, our Seller/Servicers, our company, our Investors and U.S. taxpayers all win under our expanding securitization program. Last year nearly 90 percent of Freddie Mac’s multifamily mortgage purchases were designated for securitization. The more we securitize, the more credit risk we transfer away from taxpayers and to private investors. And, by doing so, we increase multifamily market liquidity, lower the cost of capital and promote housing that’s affordable to renters nationwide.

Some Interesting Facts

  • In 2009, we averaged two K-Deals per year. Last year, we averaged four K-Deals per month.
  • We work with nearly 500 Investors worldwide in the K-Deal program and around 170 Investors in the SB-Deal program. Combined, the total number of unique Investors is about 590, including B-piece buyers.
  • It takes approximately 14 weeks to launch a K-Deal.
  • We totaled $200.47 billion combined K- and SB-Deals today with the sale of K-L01, our 201st deal.
  • Of the $200 billion, $193 billion was generated from K-Deal offerings and $7 billion from SB-Deals.

Robert Koontz is vice president, Capital Markets
Have a question or comment? Contact Robert

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