McLEAN, VA—Freddie Mac looked on with anunusual amount of pride as it closed the books on its latest$1.2 billion K-Deal: it has securitized more than$80 billion in multifamily mortgages through thisprogram since its inception in 2009. "This is definitely amilestone for us," Mitchell Resnick, vicepresident of Freddie Mac Multifamily Capital Markets, tellsGlobeSt.com.
The deal is telling in other regards as well. The offering wasbacked exclusively by LIBOR-based, floating rate multifamilymortgages with five- and seven-year terms. The GSE, in short, isdoing more of these. "Borrowers seem to be more and more interestedin taking out floating rate loans," Resnick says. "I could easilysee us doing another floating rate transaction this year."
The pass-through K-deal was notable in another respect—it isbecoming clear that there is less multifamily product tosecuritize. This is not an issue with Freddie Mac, but rather,Resnick says, a function of the amount of origination happening inthe multifamily universe. "It is definitely lower this year," hesays.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
