Freddie Mac Prices $608 Million Multifamily K-Deal, K-W01 Supporting Workforce Housing

MCLEAN, VA--(Marketwired - May 24, 2016) - Freddie Mac (OTCQB: FMCC) expands its support of workforce housing with a new series of K Certificates multifamily mortgage-backed security. The K-W Series offerings of Structured Pass-Through Certificates (K Certificates) are backed by loans on multifamily properties where rent is affordable to the majority of low- to middle-income households in a geographic location.

The company expects to issue approximately $608 million in K-W01 Certificates, which are expected to settle on or about May 26, 2016. The K-W01 Certificates are guaranteed by Freddie Mac and are backed by a majority of mortgages in which the properties have rents that are less than the average market rent for the area and are affordable to individuals earning 80 percent or less of the area median Income in areas other than high cost housing markets. The loans were originated through the company's workforce housing loan initiative.

"This K-Deal is important because it brings an additional private capital focus to support workforce housing, which accounts for only a fraction of new multifamily supply across the country," said Robert Koontz, vice president of Multifamily Capital Markets.

K-W01 Pricing
Class		Principal/ Notional Amount (mm)		Weighted Average Life (Years)		Spread (bps)		Coupon		Yield		Dollar Price
A-1		$173.567		6.78		S + 75		2.5870%		2.2502%		$101.9944
A-2		$435.000		9.36		S + 80		2.8530%		2.4838%		$102.9978
X1		$608.567		8.36		T + 335		1.1182%		5.0855%		$6.9067
X3		$33.809*		9.44		T + 850		4.1948%		10.3029%		$24.8258
		* 50% of the Class X3 notional size

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