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 government-sponsored enterprise expects to guarantee about $315 million in multifamily small-balance certificates expected to settle on or about Aug. 23.
Freddie Mac is guaranteeing six senior principal and interest classes and an interest-only class of securities issued by the FRESB 2017-SB36 mortgage trust. The GSE is also acting as mortgage loan seller and master servicer to the trust. In addition, 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.
J.P. Morgan Securities LLC is the sole lead manager and book runner. Drexel Hamilton LLC, PNC Capital Markets LLC, Stifel Nicolaus & Co. Inc. and Wells Fargo Securities LLC are co-managers.