MCLEAN, VA—Two Freddie Mac programs have separately priced more than $1.2 billion in multifamily loans through its securitization activities. One is the GSE's tried-and-true K Certificates. The other is a relatively new program that apparently is making traction very quickly—its small balance loan securitization.

In the K-deal, Freddie Mac priced $1.2 billion in securities backed by seasoned loans. The K Certificates are expected to settle on or about August 27, 2015. They are guaranteed by Freddie Mac and are backed by 70 seasoned multifamily mortgages from the company's retained portfolio. This is the company's seventeenth K Certificates offering this year.

Through its small balance loan securitization program, Freddie Mac guaranteed its second series of SB Certificates, following its first earlier this month. These certificates are backed by multifamily small balance loans underwritten by Freddie Mac and issued by a third-party trust. Freddie Mac expects to guarantee approximately $109 million in SB Certificates. This is slightly more than the $108 million in the first series that settled on Aug. 18, 2015.

Earlier this month, Mitchell Resnick, vice president of Freddie Mac Multifamily Capital Markets told GlobeSt.com that Freddie Mac expects to originate some $100 million to $125 million in SB Certificates every two weeks or so.

The SB Certificates are similar in structure to Freddie Mac's K Deals except that there is only one originator of the loans. Freddie Mac believes the risk is acceptable as the originator is purchasing the subordinate loans.

The originator can partner with a B piece buyer to purchase the subordinate piece or sell these loans to the company. There is no restriction on how long these loans must remain on the originator's balance sheet.