WASHINGTON, DC-Fannie Mae and Freddie Mac’s multifamily operations are steadily progressing this year, with both GSEs pushing out deals on a regular basis.
Fannie Mae recently announced it had issued approximately $7.6 billion of multifamily MBS in the second quarter of 2013, backed by new multifamily loans delivered by its lenders. Freddie Mac, for its part, just announced its eleventh K Certificate offering for the year. Freddie expects to offer approximately $1.37 billion in K Certificates, which are expected to settle on or about July 24, 2013.
For the quarter, Fannie Mae announced it resecuritized $3 billion of DUS MBS through its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMSTM) program.
Other highlights of Fannie Mae’s multifamily activity in the second quarter of 2013 include:
- New multifamily MBS business volumes in the second quarter of 2013 totaled approximately $7.6 billion.
- Issuance of Fannie Mae’s structured multifamily securities created from collateral selected by Fannie Mae Capital Markets included three Fannie Mae GeMS REMIC transactions. In addition, through the ACES program, Fannie Mae issued two multifamily REMICs backed by $692 million of dealer-contributed DUS MBS in the second quarter of 2013, adding to the liquidity of Fannie Mae DUS MBS.
- Fannie Mae Capital Markets sold approximately $5.5 billion of multifamily mortgage securities from its portfolio in the second quarter of 2013.2
Freddie Mac’s new K Certificates are backed by 87 recently-originated multifamily mortgages and are guaranteed by Freddie Mac. They will be offered to the market by a syndicate of dealers led by Wells Fargo Securities, LLC and Morgan Stanley & Co. LLC as co-lead managers and joint bookrunners. Barclays Capital Inc., Credit Suisse Securities (USA) LLC, Jefferies LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated will serve as co- managers.
The K-029 Certificates include two senior principal and interest classes, one senior interest only class and a junior interest only class.