FREDDIE MAC OFFERS ONE-STOP EXECUTION FOR MULTIFAMILY HIGH-LEVERAGE LOANS, UP TO 85 PERCENT LTV

McLean, VA – Freddie Mac (NYSE: FRE) announces a new multifamily loan execution to provide borrowers with up to 85 percent loan to value (LTV) financing. The product is designed to streamline the process and reduce the cost of obtaining higher leverage financing by eliminating the need to pursue additional proceeds or mezzanine financing separately. Freddie Mac is partnering with CWCapital LLC, a national lender to the multifamily and commercial real estate industries, to provide this one-stop execution for combined financing.

Under this new loan execution, Freddie Mac Program Plus® lenders will have the ability to offer additional financing for conventional fixed-rate mortgages ranging from $3 million to $22.5 million.

“We are making it easier for the borrower,” said Mitchell Kiffe, vice president of Multifamily Flow Sourcing for Freddie Mac. “Borrowers no longer have to go through separate processes and different lenders to combine first mortgage financing with a higher leveraged piece, and it offers them larger loan proceeds at competitive prices. The structure is a first and second mortgage, as compared to a more typical mezzanine structure that secures the junior position with a pledge of partnership interests in the borrowing entity.”

Both mortgages will be underwritten generally pursuant to Freddie Mac’s current standards with certain refinements that will be communicated directly to the correspondent lender by Freddie Mac. Each mortgage will be documented with a note and a security instrument. Freddie Mac will structure a first mortgage up to a 75 percent LTV and a second mortgage that would bring the total LTV to 85 percent. Price quotes will be issued on the first and second mortgages, and a price quote will also be issued on the blended price for the combined 85 percent financing. Freddie Mac will purchase the larger first mortgage and CWCapital will purchase the smaller second mortgage directly from the correspondent lender. The correspondent lender will originate and service both mortgages.

“This second mortgage product provides efficiency, terms and pricing not otherwise available in today’s market,” said Michael D. Berman, president of CWCapital. “We are very pleased to partner with Freddie Mac, as we bring our vertically integrated investment capability to their correspondent lenders and borrowers.”

Since the introduction of the Freddie Mac Program Plus network of multifamily loan originators and servicers in 1993, Freddie Mac has provided financing for over 40,000 multifamily properties totaling more than $100 billion.

Freddie Mac is a stockholder-owned company established by Congress in 1970 to support homeownership and rental housing. Freddie Mac fulfills its mission by purchasing residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible for one in six homebuyers and nearly four million renters in America.

CWCapital, a national full-service lender to the multifamily and commercial real estate industries, currently services over $6 billion of mezzanine and first mortgage loans in 48 states. Through its affiliated companies, it controls subordinate CMBS on approximately $100 billion of multifamily and commercial loans. Cadim, a Montreal-based real estate advisor and portfolio manager, holds a majority interest in CWCapital. Cadim is a subsidiary of the Caisse de dépôt et placement du Québec, the leading institutional fund manager in Canada with more than $100 billion of assets under management. For more information, visit www.cwcapital.com.

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