MCLEAN, Va., July 26, 2018 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB:FMCC) today announced its offering of the Multifamily Aggregation Risk Transfer Certificates, Series 2018-KT03 (KT03 Certificates), which will be backed by multifamily mortgage loans that are awaiting sale into K-Series securitizations. This offering of $1 billion in KT03 Certificates is expected to settle on or about July 30, 2018 and is the first offering of Multifamily Aggregation Risk Transfer Certificates (KT Certificates) this year.
KT Certificates are designed to transfer a portion of the credit risk associated with eligible multifamily mortgage loans to certain investors prior to sale into K-Series securitizations. KT03 is designed to transfer the risk on multifamily mortgages that are in their lease up period (Lease Up Loans), which occurs before the collateral is fully stabilized. The initial pool contains 20 Lease Up Loans, eight of which are seasoned more than 24 months. After the closing date, Freddie Mac may also include loans backed by student and seniors housing in the pool.
On the settlement date, Freddie Mac will sell to the FMPRE 2018–KT03 Multifamily Aggregation Risk Transfer Trust (KT03 Trust) approximately $1 billion in eligible mortgage loans. During a 42-month revolving period Freddie Mac will purchase mortgage loans eligible for repurchase from the KT03 Trust for inclusion in K-Series securitizations and replace them with additional eligible mortgage loans.
Freddie Mac’s press releases sometimes contain forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, some of which are beyond the company’s control. Management’s expectations for the company’s future necessarily involve a number of assumptions, judgments and estimates, and various factors could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements. These assumptions, judgments, estimates and factors are discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2017, and its reports on Form 10-Q and Form 8-K, which are available on the Investor Relations page of the company’s Web site at www.FreddieMac.com/investors and the SEC’s website at www.sec.gov. The company undertakes no obligation to update forward-looking statements it makes to reflect events or circumstances occurring after the date of this press release.
The financial and other information contained in the documents that may be accessed on this page speaks only as of the date of those documents. The information could be out of date and no longer accurate. Freddie Mac undertakes no obligation, and disclaims any duty, to update any of the information in those documents.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.
