Freddie Mac Announces Pricing of $376 Million Multifamily Small Balance Loan Securitization

MCLEAN, Va., May 22, 2020 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) announces the pricing of the SB74 offering, a multifamily mortgage-backed securitization backed by small balance loans underwritten by Freddie Mac and issued by a third-party trust. The company expects to issue approximately $376 million in SB Certificates (SB74 Certificates), which are expected to settle on or about May 29, 2020. Freddie Mac Small Balance Loans generally range from $1 million to $7.5 million and are generally backed by properties with five or more units. This is the fifth SB Certificate transaction in 2020.

SB74 Pricing

Class	Principal/Notional Amount (mm)		Weighted Average Life (Years)	Spread (bps)	Coupon	Yield	Dollar Price
A-5F	$71.417		4.05	56	1.0000%	0.8668%	100.4682
A-5H	$116.777		4.15	72	1.1700%	1.0334%	100.4850
A-7H	$75.277		5.47	82	1.3200%	1.2162%	100.4752
A-10F	$113.436		7.26	79	1.3800%	1.2995%	100.4845
X-1	$376.907		5.33	Non-Offered

Details:

• Co-Lead Managers and Joint Bookrunners: Wells Fargo Securities, LLC and J.P. Morgan Securities LLC
• Co-Managers: Multi-Bank Securities, Inc., Performance Trust Capital Partners, LLC, Stifel, Nicolaus & Company, Incorporated and SunTrust Robinson Humphrey, Inc.
• SB74 Certificates Offering Circular
• Small Balance Securitization Investor Presentation PDF

Freddie Mac is guaranteeing four senior principal and interest classes and one interest only class of securities issued by the FRESB 2020-SB74 Mortgage Trust. Freddie Mac is also acting as mortgage loan seller and master servicer to the trust. In addition to the five classes of securities guaranteed by Freddie Mac, the trust will issue certificates consisting of Class B and Class R Certificates, which will not be guaranteed by Freddie Mac and will be sold to private investors.