Freddie Mac has priced a multifamily mortgage-backed securitization backed by small-balance loans issued by a third-party trust and underwritten by the company.
The company plans to guarantee approximately $237 million in multifamily certificates that are expected to settle on or about Oct. 18.
Freddie Mac is guaranteeing six senior principal and interest classes, and an interest-only class of securities issued by the FRESB 2017-SB39 Mortgage Trust. It is also acting as mortgage loan seller and master servicer to the trust.
In addition to the seven classes of securities guaranteed by Freddie Mac, the trust will issue certificates consisting of class B and R certificates, which will not be guaranteed by Freddie Mac and will be sold to private investors.
Wells Fargo Securities LLC is the sole lead manager and book runner. The co-managers are Amherst Pierpont Securities LLC, FTN Financial Capital Markets, J.P. Morgan Securities LLC and Samuel A. Ramirez & Co. Inc.