MCLEAN, VA-Freddie Mac’s mezz lending program for multifamily isformally beginning operations on Wednesday. A spokeswoman for theGSE tells GlobeSt.com that Berkshire Properties, Carmel Partners,Essex Property Trust and Waterton Capital Solutions will beginproviding quotes to customers now that they have completed thetraining program.

First announced in April, the mezz program has been put in placeto help borrowers refinance properties whose values have dropped.In it, Freddie originates a first mortgage with a fixed rate andthe mezz lender provides another 15% at either a fixed or floatingrate.

The demographics of its target audience explain why equitylenders have been tapped to participate, David Brickman, vicepresident of multifamily and CMBS Capital Markets at Freddie Mac,told GlobeSt.com in an earlierinterview--meaning the companies are not traditionaldebt players as one might expect. The spokeswoman adds thatFreddie doesn’t have immediate plans to expand the number or typeof lenders.