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Freddie Mac touts $100B rental housing rainmaker

K-Deal Multifamily Mortgage-Backed Securities program makes GSE one of nation’s largest commercial mortgage credit issuers

Government sponsored enterprise (GSE) Freddie Mac has hit the $100-billion milestone in its securitization of multifamily mortgages as part of its “K-Deal” Multifamily Mortgage-Backed Securities program. Freddie Mac launched the K-Deal program in 2009 to securitize mortgage loans backed by multifamily apartment properties, the vast majority of which support affordable rental housing. The program is also intended to attract private capital to the market and minimize taxpayer exposure to credit risk. The program encompasses various types of transactions, including five-, seven- and 10-year term loans; floating-rate loans; single borrower loans; legacy portfolio loans; and seniors, student, military and targeted affordable housing loans. Reflecting on the program’s six-year history, Freddie Mac Multifamily Executive Vice President David Brickman said, “In 2008 when we first started talking to investors about doing a CMBS-style securitization, some of them thought we were ...