Adjustable rate mortgages are now eligible for securitization into K Certificates, Freddie Mac multifamily mortgage-backed securities.
The Freddie Mac multifamily mortgage-backed securities — K Certificates, are backed by selected loans purchased through CME. CME is the multifamily mortgage loan execution path.
CME offers greater certainty of execution and lower risk-based pricing compared to loans the company holds in its portfolio. Freddie Mac has a growing pipeline of CME loans, which comprised more than 70 percent of its multifamily funding volume in the last 15 months.
According to David Brickman, senior vice president of Multifamily for Freddie Mac, “CME continues to expand liquidity in the multifamily capital marketplace by creating a reliable, competitively priced source of financing through our deep pool of capital providers. With our growing pipeline of CME loans, we’ve become a reliable and consistent issuer of K Certificates, multifamily mortgage-backed securities.”
Brickman notes that since Freddie Mac began offering K Certificates backed by CME loans, it has opened up the capital markets to commercial mortgage backed securities issuances through 13 offerings totaling more than $14 billion.”
Since the launch of Freddie Mac’s multifamily business in 1993, it has provided more than $243 billion in financing for approximately 57,000 multifamily properties.
With AAOA, landlords have resources at their fingertips. Check out our Landlord Forms page.
American Apartment Owners Association offers discounts on products and services for landlords related to your rental housing investment, including rental forms, tenant debt collection, tenant background checks, insurance and financing. Find out more at www.joinaaoa.org.