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 expects to guarantee about $195.5 million in multifamily small-balance certificates, expected to settle on or about April 19.
Freddie Mac is guaranteeing six senior principal and interest classes and an interest-only class of securities issued by the FRESB 2017-SB29 Mortgage Trust and is also acting as mortgage loan seller and master servicer to the trust.
In addition to the seven classes of securities the company is guaranteeing, the trust will issue certificates consisting of the class X-2, B and R certificates, which will be sold to private investors and will not be guaranteed by Freddie Mac.
J.P. Morgan LLC is the sole lead manager and book runner. Co-managers are Multi-Bank Securities Inc., Raymond James & Associates Inc., Stifel Nicolaus & Co. Inc. and Wells Fargo Securities LLC.