McLEAN, VA—Loans made under Freddie Mac's recently-introduced manufactured housing program were included in the GSE's latest K-Deal of $1.1 billion, which is pricing this week. The issuance is Freddie Mac's sixteenth this year.

"By adding MHCs to our loan products, we are bringing new liquidity and needed competition to the manufactured housing community space," says Mitchell Resnick, vice president of Freddie Mac Multifamily Capital Markets.

In May the GSE announced it would begin purchasing and securitizing manufactured housing loans. One reason it decided to expand its platform to include this asset class is because manufactured homes are a key solution for affordable housing. Freddie Mac spent the summer ramping up the program and made it generally available in July.

By August Walker & Dunlop originated the first loan through the program -- $10.5 million for Longhaven Estates, a manufactured housing community in Phoenix, AZ, on behalf of Cobblestone Real Estate LLC and Tricon Capital Group.

Eventually Freddie Mac expects to see manufactured housing loans as much as staple in its K Certificates as senior and student housing deals are.

This particular batch of K-Certificates—K-041, to be precise—includes 96 recently-originated multifamily mortgages. A breakdown of the offering by Kroll Bond ratings shows that the pool contains three age restricted multifamily properties and one age restricted manufactured housing community, which together account for 2.7% of the pool.

The pool contains also contains seven properties in which students occupy more than 20% of the units. Affordable housing and military housing are also part of the mix.