Freddie Mac has announced the pricing of 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 guarantee about $209 million in multifamily SB Certificates. The certificates are expected to settle on or about Dec. 22.
Freddie Mac is guaranteeing six senior principal and interest classes and an interest-only class of securities issued by the FRESB 2016-SB25 Mortgage Trust and is acting as mortgage loan seller and master servicer to the trust. In addition to the seven classes of securities guaranteed by the company, the trust will issue certificates consisting of the class B, X2-H, X2-CPC and R certificates, which will not be guaranteed by Freddie Mac and will be sold to private investors.
J.P. Morgan Securities LLC is the sole lead manager and book runner. Drexel Hamilton LLC, Raymond James & Associates Inc., Stifel Nicolaus & Co. Inc. and Wells Fargo Securities LLC are co-managers.