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Multifamily Securities

Freddie Mac issues high-grade Multifamily securities including K Certificates, Q Certificates, Multifamily Variable Rate Securities (backed by tax-exempt bonds) and PCs. In Guaranteed SB Transactions, Freddie Mac guarantees private-label securities issued by third-party trusts and generally does not issue securities.

K Certificates

Multifamily K Certificates are regularly-issued structured pass-through securities backed by multifamily mortgage loans. K-Deals feature a wide range of investor options which include guaranteed senior and interest only bonds. The related underlying private label trust includes unguaranteed mezzanine, subordinate and interest only bonds, and is not issued by Freddie Mac. K-Deal Structured Pass-Through Certificates carry Freddie Mac’s guarantee of timely payment of interest and ultimate payment of principal.

Guaranteed Small Balance Loan (SB) Transactions

In guaranteed SB transactions, Freddie Mac guarantees senior classes of private-label securities backed by multifamily SB Loans generally ranging from $1-$5 million and having five or more units. In a standard SB execution, the loans are underwritten by Freddie Mac at the time of purchase, aggregated by Seller or groups of Sellers and subsequently sold by Freddie Mac for securitization by a third-party issuer. Unlike K Certificates and other Multifamily securities, Freddie Mac generally does not issue structured pass-through securities in guaranteed SB transactions.

M Certificates (formerly Multifamily Variable Rate Certificates)

Freddie Mac's Class A Multifamily M Certificates are fully guaranteed tax-exempt and taxable securities supported by pools of unenhanced tax-exempt and taxable multifamily housing collateral. Multifamily M Certificates offer Freddie Mac's guarantee of timely payment of principal and interest.

Q Certificates

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 PCs are secured by structures with five or more units designed principally for residential use, with terms generally ranging from five to 30 years. All Multifamily PCs offer the Freddie Mac guarantee of timely payment of interest and full and final payment of scheduled principal.

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