Freddie Mac Prices $451 Million K-Deal, K-W02, Supporting Affordable Multifamily Housing for Low- and Moderate-Income Working Families

MCLEAN, VA--(Marketwired - Mar 27, 2017) - Freddie Mac (OTCQB: FMCC) today announced the pricing of a new offering of guaranteed Structured Pass-Through Certificates (K Certificates) backed by loans on multifamily properties affordable to working households earning low- to moderate-incomes. The company expects to issue approximately $451 million in K Certificates (K-W02), which are expected to settle on or about March 30, 2017. K-W02 is the second K-Certificate issued under the K-W Series Freddie Mac launched last year.

The majority of the mortgages backing K-W02 are on workforce properties, which have rents below the area average market rent and are affordable to individuals earning 80 percent or less of their area median income, excluding high cost housing markets. K-W02 Certificates are guaranteed by Freddie Mac.

"We're proud to announce our second K-Deal exclusively focused on workforce rental housing. This transaction affirms there is a competitive and responsible way for private investors to support the development and preservation of critically needed affordable workforce rental housing. Freddie Mac's focus on this vital segment of the market underscores our commitment to the long-term sustainability of affordable rental housing nationwide," said Robert Koontz, vice president of Multifamily Capital Markets.

K-W02 Pricing

Class		Principal/ Notional Amount (mm)		Weighted Average Life (Years)		Spread (bps)		Coupon		Yield		Dollar Price
A-1		$186,764,000		6.36		S + 48		2.8960%		2.6205%		$101.4955
A-2		$265,000,000		9.43		S + 66		3.3600%		2.9875%		$102.9891
X1		$451,764,000		7.83		T + 175		0.4474%		4.0119%		$2.1629
X3		$50,196,401		9.54		T + 440		2.9363%		6.7675%		$20.1630

Details