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Multifamily
Securitization
Overview
As of March 31, 2018
MULTIFAMILY SECURITIZATION © Freddie Mac 2
Executive Summary……….……………………………………………..…………………………..............
Freddie Mac Multifamily Business…………………………………….……….…….........…….…............
Multifamily Market Overview…………………………………………….………...……………….......……
Freddie Mac Multifamily Production, Sales and Underwriting……………..……………......……….......
Freddie Mac Multifamily Initiatives……………………...………………………………….......……..…….
Freddie Mac Multifamily Securitization Program……...………………………………….......……..…….
Freddie Mac Multifamily Competition………………………….………………………......…..……..…….
Freddie Mac Multifamily Investor Resources……………………………………………..............…..…..
Appendix I: Freddie Mac Multifamily Recent Transaction Highlights...…………………............………
Appendix II: Freddie Mac Multifamily Team …………….………………………………………….….......
Table of Contents
3
4
11
19
27
29
48
50
57
64
MULTIFAMILY SECURITIZATION © Freddie Mac 3
Executive Summary
The multifamily market has experienced very strong rent and occupancy
trends over the last few years and the demand for rental housing is
expected to continue to rise. The multifamily sector continues to
experience strong investor interest and outperforms other commercial real
estate sectors
Our business model underwent a significant shift – from an investments
business to a securitization business – beginning in 2008
This shift has been successful: securitization enables us to transfer
virtually all risk to third parties, thereby reducing our reliance on the
retained portfolio and government backstop guarantee, our guarantee
comes before draw
As part of our business strategy to be innovative and provide thought
leadership, we continue to expand our support of affordable housing
through new offerings such as small balance, manufactured housing
community loans and tax-exempt loans, as well as green financing
Freddie Mac’s
Core Mission is to
provide Liquidity,
Stability and
Affordability to
the US Housing
Market
4
Freddie Mac Multifamily Business
MULTIFAMILY SECURITIZATION © Freddie Mac 5
Freddie Mac Multifamily Business Key Facts
The Multifamily Line of
Business of Freddie Mac
helps to ensure an ample
supply of affordable rental
housing by purchasing
mortgages secured by
apartment buildings with
five or more units
Freddie Mac buys loans
from a network of
approved Multifamily
Seller/Servicers that have
over 150 branches
nationwide, substantial
lending experience and
established performance
records
Freddie Mac follows a
prior-approval
underwriting approach
and completes the
underwriting and credit
reviews of all multifamily
mortgages in-house
Freddie Mac’s
Core Mission is to
provide Liquidity,
Stability and
Affordability to
the US Housing
Market
Multifamily employs over
900 experienced
professionals at its
headquarters, four
regional offices and eight
field offices
Freddie Mac has provided
more than $538 billion in
financing for
approximately 80,000
multifamily properties
since 1993, representing
more than 9,060,000
apartment units
Freddie Mac’s Multifamily
total book of business of
$279 billion is comprised of
$213 billion of multifamily
guarantees, $33 billion of
unsecuritized loans, $8
billion of multifamily
mortgage-related securities
and $25 billion of additional
market support (primarily
unguaranteed securities)
MULTIFAMILY SECURITIZATION © Freddie Mac 6
Freddie Mac Multifamily Business 1Q 2018 Review
Freddie Mac Multifamily funded $13.0 billion in new business volume during 1Q 2018,
which provided financing for approximately 1,200 multifamily properties, representing
approximately 152,000 rental units
▪ $16.2 billion of multifamily loans were securitized
into K-Deals and SB-Deals during 1Q 2018
▪ Freddie Mac’s delinquency rate was 2 basis points
as of March 31, 2018
» securitization delinquency rate was 1 basis point
» credit enhanced mortgage portfolio delinquency
rate was 1 basis point
1Q 2018 New Business Volume (based on UPB) 1Q 2018 New Business Volume (based on # of loans)
2%
8%
90%
CE Bond
Retained HFI
Retained HFS60%
40%Refinances
Acquisitions
MULTIFAMILY SECURITIZATION © Freddie Mac 7
Freddie Mac Multifamily Business Results
We maintain strong credit and capital management discipline and generate solid returns
Key Metrics 2017 1Q 2018
New business volume $73.2 billion $13.0 billion
Percentage excluded from volume cap 54% 52%
Units financed ~820,000 units ~152,000 units
Securitization volume $68.1 billion $16.6 billion
Comprehensive income, net of taxes $1.9 billion $404 million
Total book of business $273 billion $279 billion
Credit losses $4 million $0 million
60+ day delinquency rate 2 bps 2 bps
REO inventory 2 properties 2 properties
MULTIFAMILY SECURITIZATION © Freddie Mac 8
Freddie Mac Multifamily New Business Volume
We provide financing in all multifamily markets; our volumes have grown in line with the
overall market growth
MULTIFAMILY SECURITIZATION © Freddie Mac 9
Purchase Volume by Product
We continue to support the needs of the rental housing market across communities
nationwide and have increased our presence in underserved markets
Annual Performance ($ in billions) 1Q17 1Q18
New Business Volume
Targeted Affordable Housing (TAH) $1.0 $1.5
Conventional $11.7 $11.5
Total $12.7 $13.0
Products of Interest
Small Balance Loans (SBL) $1.3 $1.7
Structured Deals $0.5 $0.8
Manufactured Housing Communities (MHC) $0.2 $0.2
Senior Housing $0.5 $0.8
Student Housing $0.4 $0.5
Green Advantage $3.0 $4.0
MULTIFAMILY SECURITIZATION © Freddie Mac 10
0
10
20
30
40
50
60
70
80
90
BA
SIS
PO
INT
S
GSE Delinquency RatesFREDDIE MAC (60+ DAY)
FANNIE MAE (60+ DAY)
Multifamily Delinquency Rates
Notes: Freddie Mac does not report modified or forbearance loans in delinquency rates if the borrower is less than two monthly payments past due. Fannie Mae reports
forbearance loans in their delinquency rates. Sources: Freddie Mac, Fannie Mae, American Council of Life Insurers (ACLI) Quarterly Investment Bulletin, FDIC Quarterly Banking
Profile, TREPP (CMBS multifamily 60+ delinquency rate, excluding REOs) for periods prior to 3Q17, Wells Fargo CMBS research for 4Q17 and 1Q18 CMBS delinquency rates
Our disciplined credit practices are one of the main drivers of the continued strong
performance of our offerings
0
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
1,300
1,400
BA
SIS
PO
INT
S
Delinquency Rates
FREDDIE MAC (60+ DAY)
FANNIE MAE (60+ DAY)
MF CMBS MARKET (60+ DAY)
ACLI (60+ DAY)
FDIC Insured Institutions
11
Multifamily Market Overview
MULTIFAMILY SECURITIZATION © Freddie Mac 12
Rental Demand Keeps Rising
Source: U.S. Census Bureau, Current Population Survey/Housing Vacancy Survey, Freddie Mac
A growing number of households show a preference for rental housing
60%
61%
62%
63%
64%
65%
66%
67%
68%
69%
70%
25
35
45
55
65
75
85
Ho
meo
wn
ers
hip
Rate
Ho
use
ho
lds
(mill
ion
s)
Owner and Renter Households and Homeownership Rate (1990 – 1Q 2018)
Owner Occupied Renter Occupied Homeownership Rate
MULTIFAMILY SECURITIZATION © Freddie Mac 13
Source: REIS
Multifamily Fundamentals are Healthy
Multifamily market is moderating but remains healthy – vacancy rates are below
long-term historical averages and effective rent growth remains positive
4.7%
-2.5%
4.2%
5.8%
3.9%3.8% 3.8%
3.0%2.5%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0% Vacancy Rate and Change in Effective Rent
Change in Effective Rent Vacancy Rate
MULTIFAMILY SECURITIZATION © Freddie Mac 14
Multifamily Fundamentals (continued)
Sources: Moody’s Analytics DataBuffet.com and U.S. Census Bureau
Notes: Starts and completions based on all areas of the U.S., while permits are only for areas that require a building or zoning permit. Moody’s Analytics estimated that in
2000, 95% of population was living in a permit issuing area.
Slowing of construction permits compared to 2015 and strong renter demand are signs
that the market is stable
0
5
10
15
20
25
30
35
40
45
50
0
100
200
300
400
500
600
700
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
(Q
1)
Rente
r O
ccupie
d H
ousehold
s (
mill
ions)
MF
Perm
its,
Sta
rts a
nd C
om
ple
tions (
thousands)
Multifamily Permits, Starts and Completions (5+ Units) and Renter Households
MF Permits MF Starts MF Completions Renter Occupied
MULTIFAMILY SECURITIZATION © Freddie Mac 15
Housing completions are well below the long-run average; the multifamily market is
helping to fill the void
Housing Shortage
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
0
500
1,000
1,500
2,000
2,500
Ratio o
f C
om
ple
tions t
o H
ousehold
s
Housin
g C
om
ple
tions
Housing Completions to Total Households (SF & MF)
TOTAL HOUSING COMPLETIONS LONG-RUN AVERAGE COMPLETIONS
COMPLETIONS TO HOUSEHOLDS LONG-RUN AVERAGE COMPLETIONS TO HOUSEHOLDS
Source: Moody’s
MULTIFAMILY SECURITIZATION © Freddie Mac 16
(Base = Total Renters)
Buy
Renting fits my current lifestyle Owning a home fits within my
current lifestyle
Q: Following are several pairs of statements. For each pair, please select the point on the scale that
best reflects your opinion..
58%
63%
47%
56%63%
Attitudes Towards Renting% (2,1 Ratings – Top Favorable Ratings for the Statement)
Renting Fits My Current Lifestyle% (4,5 Ratings – Top Favorable Ratings for the Statement)
Gen X(Age 38-52)
Baby
Boomer(Age 53-71)
Young
Millennial(Age 21-27)
Older
Millennial(Age 28-37)
1 2 3 4 5
2017 Renter Survey*: Young Millennials and Boomers
More Likely to Say Renting Fits Their Lifestyle
*2017 August Harris Poll General Consumer Quick Query Omnibus Results
MULTIFAMILY SECURITIZATION © Freddie Mac 17
Current corporate spreads, the risk premium demanded to hold real estate, are aligned
with historical averages. Cap rate compression is a result of property value increase since
2009, with the market benefitting from improved access to real estate debt capital
Multifamily Cap Rates and U.S. Treasuries
Sources: Moody’s REAL Commercial Property Price Index (CPPI) and Real Capital Analytics (RCA)
0.0
0.4
0.8
1.2
1.6
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
MU
LT
IFA
MIL
Y V
ALU
E I
ND
EX
TR
EA
SU
RY
, S
PR
EA
D A
ND
CA
P R
AT
E
Cap Rate Spread (left)
Treasury Rate (left)
MF Value Index (Right)
MULTIFAMILY SECURITIZATION © Freddie Mac 18
Multifamily Mortgage Originations
Sources: Freddie Mac 10-Ks, 10-Qs, FHFA Report to Congress, and Freddie Mac's internal reports, Fannie Mae 10-Ks, 10-Qs, FHFA Report to Congress, and Fannie Mae's
Multifamily Monthly New Business Volumes, ACLI, Wells Fargo Securities LLC, Intex Solutions Inc., Mortgage Bankers Association and Freddie Mac internal research
Originations have been rising over the last few years, reflecting solid market fundamentals
19
Freddie Mac Multifamily
Production, Sales and Underwriting
MULTIFAMILY SECURITIZATION © Freddie Mac 20
Freddie Mac buys loans from a network of approved Multifamily Seller/Servicers that have
over 150 branches nationwide, substantial lending experience and established
performance records
Our Seller/Servicer Network
▪ Arbor Agency Lending
LLC
▪ Barings Multifamily
Capital LLC
▪ Basis Investment
Group, LLC
▪ Bellwether Enterprise
Real Estate Capital LLC
▪ Berkadia Commercial
Mortgage LLC
▪ Berkeley Point Capital
LLC
▪ Capital One Multifamily
Finance LLC
▪ CBRE Capital Markets
▪ Community
Preservation
Corporation
▪ Grandbridge Real
Estate
▪ Greystone Servicing
Corporation
▪ Holliday Fenoglio
Fowler LP
▪ Hunt Mortgage Group
▪ Jones Lang LaSalle
LLC
▪ KeyBank NA
▪ M&T Realty Capital
Corporation
▪ NorthMarq Capital
▪ Pillar Financial, a
division of SunTrust
Bank
▪ Pinnacle Bank
▪ PNC Real Estate -
Multifamily
▪ Prudential Affordable
Mortgage Company
▪ Walker & Dunlop LLC
▪ Wells Fargo Multifamily
Capital
Seller/Servicers
The small size of the
network promotes quality
originations and a high level
of service to lenders and
borrowers
Our Seller/Servicers must
comply with our standards
for both origination and
servicing of multifamily
loans, which includes
meeting minimum financial
requirements and
undergoing satisfactory
annual audits
MULTIFAMILY SECURITIZATION © Freddie Mac 21
The Multifamily
Production and
Underwriting
teams are situated
throughout the
country to
promote market
expertise and
provide better
customer service
Production, Sales & Underwriting Locations
▲ WESTERN REGION
444 S Flower St
44th Floor
Los Angeles, CA 90071
(213) 337-4200
▲ CENTRAL REGION
333 W Wacker Dr
Suite 2500
Chicago, IL 60606
(312) 407-7400
▲ SOUTHEAST REGION
8100 Jones Branch Dr
McLean, VA 22102
(703) 903-2000
▲ NORTHEAST REGION
200 Park Ave
16th Floor
New York, NY 10166
(212) 418-8900
● FIELD OFFICE LOCATIONS
Atlanta, GA | Austin, TX | Dallas, TX | Denver, CO | Fort Lauderdale, FL | Houston, TX | Irvine, CA | Seattle, WA
Regional focus means we have presence, experience, and knowledge of local markets
MULTIFAMILY SECURITIZATION © Freddie Mac 22
12%16% 17% 13% 15% 12% 15% 15%
25%26%
19%20% 20%
16%16% 16%
41%37%
39% 41% 39%
40% 34% 34%
14% 13%14% 16% 14%
18%18% 18%
4% 5%6% 6%
6% 8%9% 8%
3% 3% 5% 4% 6% 6% 9% 9%
2011 2012 2013 2014 2015 2016 2017 2018
% o
f U
nit
s A
cq
uir
ed
50% AMI or less >50%-60% AMI >60%-80% AMI >80%-100% AMI >100%-120% AMI >120% AMI
83%
Financing Affordable Units
Note: The numbers above represent the percentage of affordable units at each AMI threshold. Totals may not add up to 100% due to rounding
83% of the eligible units we financed in 1Q2018 were affordable to households earning at
or below 100% of the Area Median Income (AMI)
Multifamily Acquisitions of Units by Area Median Income (AMI)
(2011 - March 31, 2018)
MULTIFAMILY SECURITIZATION © Freddie Mac 23
Our Credit Philosophy
Our credit policy
and consistent
underwriting
practices are
one of the main
drivers of our
strong Freddie
Mac Multifamily
offerings
performance
Freddie Mac makes all credit, structuring, and pricing decisions working with
Seller/Servicers during all aspects of the mortgage manufacturing process
We are focused on:
▪ Sustainable Cash Flow
▪ Market Knowledge & Fundamentals
▪ Equity
▪ Definable Exit Strategy
▪ Sponsorship
▪ Quality Real Estate Collateral
Underwriting teams are situated throughout the country to provide market expertise
Each loan goes through full underwriting and credit approval processes
MULTIFAMILY SECURITIZATION © Freddie Mac 24
Our Credit Approval Process
Production sizes,
structures and submits
loan for pricing
Production presents deal
to Regional Underwriting
for approval to quote
▼ < $100MM approval
to quote determined
by Senior Regional
Underwriting Director
▼ >$100MM - $350MM
approved by Senior Vice
President of Multifamily
Underwriting & Credit
▼ >$350MM
▼ approved by
Vice President of
Enterprise Commercial
Real Estate Risk
Borrower completes loan
application and Seller
submits underwriting
package
Underwriter completes
due diligence process,
reports findings in
investment brief
Underwriter recommends
loan for approval
▼ Up to $50MM approval
level determined by
Senior Regional
Underwriting Director
▼ $50 - $100MM approved
by Vice President of
Multifamily Underwriting
▼ $100 - $350MM
approved by Senior Vice
President of Multifamily
Underwriting & Credit
▼ >$350MM - $500MM
▼ approved by Vice
President of Enterprise
Commercial Real Estate
Risk
Loan is APPROVED,
rate-locked and funded
START
Seller submits loan
request to Production
▪ Loan requests from $500MM - $750MM also approved by
CEO and Executive Vice President Chief Enterprise Risk
Officer
▪ Loan requests > $750MM also approved by Freddie Mac Risk
Committee of the Board of Directors
▪ Final approval may be delegated for loans that obtained
formal quote approval at levels above Senior Vice President
of Multifamily Underwriting & Credit if there is no material
change during underwriting
▪ Pooled transactions > $150MM for crossed and > $500MM for
uncrossed require elevated levels of credit approval
As a general rule, transactions over $50MM UPB or that have exceptions to Freddie Mac’s Credit Policy that
impact coverage, leverage, or maturity risk parameters must receive a higher level of approval.
MULTIFAMILY SECURITIZATION © Freddie Mac 25
K-Deal Mortgage Guidelines
The following are the general guidelines for Freddie Mac’s Multifamily mortgage purchases that are intended for K-Deal
securitization (subject to certain exceptions):
Property
Type
▪ Origination requirements are focused on loans secured by occupied, stabilized and completed multifamily properties
▪ Limited amount of seniors housing, student housing, cooperative housing, manufactured housing and Section 8 HAP
contracts
Loan
Terms
▪ Mortgages are fixed rate or floating rate
▪ 5-, 7-, 10- and 12-15-year loan terms with a maximum amortization of 30 years
▪ May contain initial interest-only periods of 1-5 years
▪ Moderate exposure to full term interest-only loans
▪ Full term interest-only loans require higher initial amortizing debt service coverage ratio (DSCR) and lower loan to value
(LTV)
▪ Floating rate mortgages are based on 1-month LIBOR, generally require a third party LIBOR cap and are sized using an
equivalent fixed rate
Borrowers
▪ Single purpose entity (SPE) is required for all loans greater than or equal to $5 million
▪ A carve-out guarantor is generally required
▪ Entity guarantors are acceptable but may require financial covenants or a material adverse change clause
▪ Established large institutional borrowers with substantial prior experience with Freddie Mac mortgage programs may
have more customized documents
MULTIFAMILY SECURITIZATION © Freddie Mac 26
K-Deal Mortgage Guidelines (cont’d)
Underwriting
▪ Effective gross income is calculated based on trailing 3-months actual rent collections or the annualized current rent roll
minus a minimum 5% vacancy rate subject to submarket data and actual rent collections
▪ Operating expenses are generally calculated based on trailing 12 months
▪ Real estate taxes and insurance are based on actual annual expenses
▪ Property values are based on third-party appraisals and internal value confirmation
▪ Replacement reserves are typically required and are generally equal to the greater of an engineer’s recommendation or
$250/unit or $50/pad for Manufactured Housing Communities.
▪ Tax and insurance escrows are generally required
▪ Third party LIBOR caps that expire prior to related mortgage maturity date are required to be replaced. Replacement
cap funds are escrowed at 125% of replacement cost and are recalculated on either a semi-annual or annual basis
▪ Other third-party reports are required (e.g., Phase I ESA, property condition, zoning, etc.)
▪ Property condition, Phase I, and Zoning reports are required for all loans over $15MM. A combined property condition
and environmental analysis report is required for all loans below $15MM
LTV and
DSCR
▪ Maximum LTV of 80%, minimum DSCR of 1.25x (fixed rate) and 1.00x on the max capped interest rate for floating-rate
loans
▪ Shorter loan terms, tertiary or underperforming markets, and specialty product types typically require adjustments
▪ All loans require a maturity risk analysis
Supplemental
Financing
▪ Eligible one year after origination of the first mortgage
▪ Purchased by Freddie Mac from original Seller/Servicer under Freddie Mac’s supplemental mortgage product
▪ Lower of 80% LTV or maximum LTV per Loan Agreement and minimum amortizing DSCR of 1.25x (fixed) or 1.10x
(floating, at cap)
▪ Re-underwriting required based on current property performance, an updated appraisal and financials and Freddie
Mac’s credit policy
▪ Monthly escrows for taxes, insurance and replacement reserves required. If the first mortgage allowed for deferral of
escrows, the supplemental will trigger collection.
27
Freddie Mac Multifamily Initiatives
MULTIFAMILY SECURITIZATION © Freddie Mac 28
Other Risk Transfer and Financing Initiatives
SUPPLEMENTAL LOAN
INVESTMENT FUNDS
$1 BILLION SINCE 2016 - 5 FUNDSFreddie Mac
Multifamily
continues to add
new risk transfer
vehicles that
complement our
K-Deals and SB-
Deals
Transfers first loss risk on to-be-issued
Freddie Mac KJ securitizations
STRUCTURED CREDIT RISK
(SCR) NOTES
$2.9 BILLION OF REFERENCE POOLS
SINCE 2016 – 3 TRANSACTIONS
Provides synthetic risk transfer structure
typically for certain targeted affordable loans
$1 BILLION IN 2017
Vehicle to transfer risk on less liquid loans
e.g. value add, moderate rehabilitation
AGGREGATION RISK TRANSFER
CERTIFICATES (KT-DEALS)
$2.0 BILLION IN 2017 – 2
TRANSACTIONS
Transfers risk on loans awaiting
securitization
WHOLE LOAN INVESTMENT
FUNDS
TAX-EXEMPT LOAN
SECURITIZATION (ML-DEALS)
$656 MILLION IN 2017 – 2 TRANSACTIONS
Transfers risk on tax-exempt loans
29
Freddie Mac
Multifamily Securitization Program
MULTIFAMILY SECURITIZATION © Freddie Mac 30
Multifamily Securitization Program
In Q1 2018,
approximately 92
percent of
Freddie Mac’s
multifamily
mortgage
purchases were
designated for
securitization
Securitization is accomplished through offerings of K-Series Multifamily Mortgage Pass-
Through Certificates “K-Deals”, SB-Series Multifamily Mortgage Pass-Through
Certificates “SB-Deals” and other securitization transactions
In general, K-Deals are backed by newly acquired mortgages underwritten to Freddie
Mac’s industry leading underwriting standards. Underwriting and credit reviews are
completed by Freddie Mac, and securitized loans are underwritten to the same
standards as loans held in our investment portfolio
Freddie Mac Multifamily announced the addition of the Small Balance Loans (“SBL”) line
of business to its lending platform in October 2014. SBL generally refers to loans
between $1 – $7.5 million and properties with 5- 100 units. Deals greater than $6 million
and up to $7.5 million in small and very small markets may be permitted subject to
Freddie’s approval of an exception request. Unit limit exceptions are also permitted.
In January 2017, Freddie Mac introduced its first aggregation period risk transfer
transaction, known as “KT-Deal”, as a risk transfer vehicle for loans awaiting
securitization. The first KT-Deal (KT01) was closed in February 2017. The deal is
backed by approximately $1 billion of 7 & 10 year fixed rate collateral. The second KT-
Deal (K-T02) was closed in November of 2017. The KT02 deal is backed by
approximately $1 billion of fixed and floating rate lease-up collateral
In June 2017, Freddie Mac introduced a new series of credit risk transfer securities
backed by Tax-Exempt Loans (TELs) made by Freddie Mac approved Target Affordable
Housing Seller/Servicers to state or local housing agencies and secured by affordable
rental housing. The TEL program finances stabilized affordable multifamily properties
with 4% Low-Income Housing Tax Credits and at least 7 years remaining in the LIHTC
compliance period
As of March 31, 2018, there has been approximately:
» $247.2 billion of K-Deal issuance since the start of the program in 2009
» $13 billion of SB-Deal issuance since the start of the program in 2015
» $656 million of ML-Deal issuance since the start of the program in 2017
MULTIFAMILY SECURITIZATION © Freddie Mac 31
provided by Freddie Mac’s guarantee plus
credit support of underlying mortgages
underwritten to Freddie Mac’s portfolio
standards
Multifamily Securitization Program – Strengths
STRONG CREDIT
STRONG
PERFORMANCE
DIVERSIFICATION
through pooled risk of many
assets versus single asset risk in
a typical deal
K-Deals are secured by assets with some
of the industry’s lowest delinquency and
vacancy rates, along with other strong
property fundamentals
associated with defeasance or
yield maintenance
CALL PROTECTION
TRANSPARENCY
& CONSISTENCY
on collateral and deal information via
Multifamily Securities Investor Access
Tool
supported by expectations for
repeatable and reliable issuance
subject to market conditions
LIQUIDITY
SERVICING
STANDARD
improves the Borrower experience
post-securitization
Freddie Mac
Multifamily is an
active and
consistent
issuer of
high-grade
multifamily
securities,
featuring
transparency
and consistency
on collateral and
deal information
MULTIFAMILY SECURITIZATION © Freddie Mac 32
Freddie Mac has used its Multifamily
Seller/Servicer Guide to outline its
Servicing Standard and expanded it in
2012 to directly refer to it as the
Servicing Standard in each Pooling and
Servicing Agreement (PSA)
▪ This standard ensures transparency and
on-going communication between all
post-securitization transaction parties
We partner with all of the parties
involved with each loan post-
securitization to ensure that they protect
the Freddie Mac brand
▪ Freddie Mac is not a credit decision-
maker but is monitoring the process
▪ Freddie Mac acts as the Servicing
Consultant to help create a shared credit
philosophy and consistent processes
» Provides an analysis of “what Freddie
Mac would do” under our credit
guidelines when asked by the Master
Servicer
Servicing Standard - Best-in-Class Service
The Freddie Mac
Multifamily
Servicing
Standard ensures
that we are
delivering
best-in-class
service
throughout the
life of the loan
SPECIAL SERVICERS
MULTIFAMILY SECURITIZATION © Freddie Mac 33
Multifamily Securitization Volume (2009 – Q1 2018)
Our securitization program has seen unprecedented growth as we continue to diversify our
product execution options
1 The vast majority of our securitization volume is workforce housing loans. The K-W workforce housing deal type is a securitization type we are considering on a limited basis for certain
types of workforce housing and represents only a small subset of our overall workforce housing volume.
2 Total UPB from prior years may not add up to total ending balance due to rounding.
$0
$10
$20
$30
$40
$50
$60
$70
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Tota
l UP
B (
$ B
illio
n)
Execution Volume
10 Year 7 Year 5 Year SASB No-Subordination
Floating Rate Seniors Housing Seasoned Q-Deal Supplemental
>10 Year Small Balance Workforce SR-Deal ML-Deal
Large Loan Value-Add
2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 2018 Total
Total UPB $2.1 $6.4 $13.7 $21.2 $28.0 $21.5 $37.5 $51.7 $64.3 $16.2 $262.7
K-Deals $2.1 $6.4 $13.7 $21.2 $28.0 $21.3 $35.6 $47.3 $56.7 $14.7 $247.2
Q-Deals 0 0 0 0 0 $0.2 $0.1 $0.5 $1.2 0 $2.0
SB-Deals 0 0 0 0 0 0 $1.8 $3.9 $5.5 $1.5 $12.7
ML-Deals 0 0 0 0 0 0 0 0 $0.6 0 $0.6
SR-Deals 0 0 0 0 0 0 0 0 $0.2 0 $0.2
1
2
MULTIFAMILY SECURITIZATION © Freddie Mac 34
Multifamily Securitization Volume (Continued)
Deal Type Descriptor Description # of Deals Total UPB (IN BILLIONS)
Total UPB 262.7
10 Year K-000 Series for fixed loans with various terms, mostly 10 year terms 72 98.7
Floating Rate K-F00 Series for loans with floating rates of various terms 44 57.3
7 Year K-700 Series for fixed loans with 7 year terms 31 39.4
Single Sponsor K-ABC Series for Single-Sponsor loans, sometimes single asset 25 24.0
Small Balance SB-00 Series for small balance loans, also known as the FRESB series 47 12.6
Seniors Housing K-S00 Series for loans backed by multifamily mortgages on senior properties 10 6.3
Supplemental K-J00 Series for supplemental loans 19 5.0
5 Year K-500 Series for fixed loans with 5 year terms 4 4.1
No-Subordination K-P00 Series for portfolio loans, with no subordinate piece 4 3.6
>10 Year K-1500 Series for fixed loans with greater than 10 years 4 3.0
Workforce K-W00 Series for workforce housing loans 4 2.4
Third Party Q-000 Series for third party collateral 9 2.0
Large Loan K-L00 Series for large loans 2 1.8
Seasoned K-X00 Series for seasoned loans 2 1.1
Tax Exempt ML-00 Series for tax exempt loans 3 0.7
Value-Add K-I00 Series for value-add loans 1 0.6
Single Family Rental SR-01 Series for single family rental 1 0.2
MULTIFAMILY SECURITIZATION © Freddie Mac 35
Typical K-Deal Issuance Timeline
Internal Pool
Preparation
(4 weeks)
Surveillance
(Ongoing)
Preliminary Due
Diligence
(2 weeks)
Full Due
Diligence
(5 - 6 weeks)
Marketing /
Placement
(1 - 2 weeks)
Closing /
Settlement
(1 - 2 weeks)
▪ Identify pool
collateral
▪ Pool preparation
including data tapes,
asset summary
reports and
mortgage files
▪ Engage rating
agencies for
preliminary analysis,
if applicable
▪ Guarantor
▪ Surveillance team
monitoring
▪ Review and clear
Trustee exception
reports
▪ Prospective
Subordinate bond
investors perform
preliminary due
diligence
▪ Subordinate bond
investor selected
▪ Rating agency
performs preliminary
analysis completed
▪ Select rating
agencies, if
applicable
▪ Perform accounting
and legal due
diligence
▪ Trustee and Master
Servicer selected
▪ Finalize exceptions
to representations
and warranties
▪ Subordinate bond
investor confirms
due diligence
completed and pool
finalized
▪ Finalize rating
agency levels
▪ Finalize preliminary
offering documents
(OCS, IC, OM, PSA,
Term Sheet)
▪ Placement agent
announces
transaction
▪ Respond to investor
inquiries
▪ Launch and price
senior, mezzanine
and interest-only
classes
▪ Finalize offering
documents (OCS,
IC, OM, PSA, MLPA)
▪ Prepare for closing
▪ Settlement
▪ Mortgage files
transferred to
Trustee and Master
Servicer
MULTIFAMILY SECURITIZATION © Freddie Mac 36
Freddie Mac Q1 2018 K-Deal Snapshot
# of Deals Deal Name Closing Date # of Loans
Closing
Balance ($
Millions)
Guaranteed Balance ($
Millions)
Average Cutoff
Principal Balance
($ Millions) Coupon
Remaining Loan
Term (Months)
Seasoning
(Months)
Loan to Value
%
Debt Service
Coverage Ratio
Loan Balance
%
Top 10
Acquisition
Loans %
Delinquency %
(60+ days & REO)
2 2009 Deals 2009 108 2,140.00 1,979.50 19.8 5.707 115 4 69.0 1.51 54.4 28.8 0.00
6 2010 Deals 2010 364 6,443.71 5,693.79 17.7 5.547 113 4 69.0 1.38 46.2 24.9 0.21
12 2011 Deals 2011 839 13,658.17 11,722.21 16.3 4.901 102 5 68.5 1.43 38.7 30.0 0.00
17 2012 Deals 2012 1141 21,203.76 17,922.33 18.6 4.081 92 6 70.3 1.45 37.3 39.3 0.00
19 2013 Deals 2013 1391 28,036.11 23,696.30 20.2 3.625 104 6 68.5 1.56 36.3 45.6 0.00
17 2014 Deals 2014 1299 21,324.93 18,262.56 16.4 3.678 92 5 68.5 1.68 34.4 47.2 0.00
30 2015 Deals 2015 1858 35,621.53 30,552.87 19.2 3.381 100 7 70.1 1.63 45.7 48.7 0.00
48 2016 Deals 2016 2,643 47,289.04 41,553.83 17.9 3.341 96 7 70.6 1.54 48.6 52.1 0.00
55 2017 Deals 2017 2,623 56,703.90 50,075.38 26.1 3.310 103 6 68.42 1.54 43.6 49.3 0.00
14 2018 Deals 3/31/2018 631 14,765.52 13,022.58 23.2 3.345 100 4 69.9 1.49 53.9 53.3 0.00
14 2018 Q1 3/31/2018 631 14,765.52 13,022.58 23.2 3.345 100 4 69.9 1.49 53.9 53.3 0.00
Most R
ecent
10 D
eals
KF42 2/27/2018 58 1,413.30 1,271.97 24.4 2.056 81 3 69.8 1.35 43.2 48.2 0.00
K073 2/28/2018 50 1,141.13 981.38 22.8 4.089 118 2 69.2 1.44 44.2 41.4 0.00
KF43 3/6/2018 42 1,264.59 1,138.13 30.1 2.140 117 3 70.5 1.39 49.6 38.0 0.00
K730 3/13/2018 52 1,470.54 1,264.66 28.3 3.927 78 4 67.8 1.59 41.6 55.2 0.00
KL02 3/16/2018 10 1,317.92 1,186.13 131.8 2.580 92 3 69.7 1.91 100.0 55.8 0.00
KF44 3/26/2018 74 1,470.51 1,323.46 19.9 2.051 81 3 70.9 1.40 34.4 46.1 0.00
KJ19 3/27/2018 60 290.98 239.97 4.8 5.260 56 12 66.4 1.41 37.1 0.0 0.00
K074 3/29/2018 81 1,434.17 1,233.39 17.7 4.230 118 2 68.9 1.37 38.3 34.4 0.00
KBX1 3/29/2018 13 741.34 667.21 57.0 3.681 83 4 58.8 1.81 88.7 100.0 0.00
KW04 3/29/2018 42 631.50 568.35 15.0 4.164 114 4 73.8 1.35 57.0 63.5 0.00
MULTIFAMILY SECURITIZATION © Freddie Mac 37
Credit Metrics – K-Deals
Our K-Deal program demonstrates consistent credit metrics since the
beginning of the program
0.00x
0.50x
1.00x
1.50x
2.00x40%
50%
60%
70%
80%
DSC
RLTV
10-Year K-Deals
Cut-off Date LTV Maturity Date LTV Underwritten NCF DSCR (Right Axis, Inverted)
2015201420132012201120102009 2016 2017 2018
0.00x
0.50x
1.00x
1.50x
2.00x40%
50%
60%
70%
80%
DSC
R
LTV
7-Year K-Deals
20152014201320122011 2016 2017 2018
MULTIFAMILY SECURITIZATION © Freddie Mac 38
¹ There has been $11.94 million in total losses realized by B-Piece investors (representing < 1 bp of total issuance)
² The respective Master Servicers maintain a watchlist for each securitization. Loans are added to and removed from the watchlist in accordance with criteria established
by CREFC
³ Information presented in the table is as of December 2017
K-Deal Performance
As of March 31st 2018:
Our K-Deal program continues a strong performance with < 1 bp of losses of
total issuance
Floating Rate Prepayment Information3
Origination
Year 2012 2013 2014 2015 2016 2017 2018
Original
Balance (Mil) $1,371.11 $1,540.31 $5,677.39 $8,770.94 $16,731.80 $10,861.90 $4,148.40
Original WAC 3.37% 2.96% 2.49% 2.30% 2.94% 3.52% 3.75%
Current
Balance (Mil) $27.50 $99.74 $1,341.71 $4,708.38 $12,295.24 $19,007.89 $4,148.35
Current WAC 4.09% 4.59% 3.38% 3.31% 3.72% 3.53% 3.72%
K-Deal Vintage Percent Prepaid
Years Since
Securitization 2012 2013 2014 2015 2016 2017 2018
<1 4.3% 0.0% 0.9% 0.3% 2.1% 0.2% 0.0%
2 30.8% 34.7% 15.4% 20.1% 23.6%
3 30.8% 37.7% 37.0% 23.8%
4 15.9% 14.1% 18.8%
5 12.4% 7.2%
6 3.8%
▪ 99.99% of the K-Deal loans are current by (outstanding
principal balance)
▪ Two loans are in special servicing (representing <3 bps of
outstanding principal)
▪ One loan is REO (representing <1 bp of outstanding
principal)
▪ Freddie Mac has not realized any credit losses on our K-
Deal guarantees¹
▪ 4.52% of the outstanding loan population (by outstanding
principal) is on the servicers’ watchlist²
MULTIFAMILY SECURITIZATION © Freddie Mac 39
1 Guaranteed Bonds include senior amortizing bonds as well as interest-only bonds derived from senior and subordinate P&I bonds
Basic K-Deal Transaction Structure
Freddie Mac securitizes loans via the K-Deal program through the following steps:
▪ The loans are sold to a third-party depositor who places the
loans into a third-party trust
▪ Private label securities backed by the loans are issued by the
third-party trust
▪ Freddie Mac purchases and guarantees certain bonds
(“Guaranteed Bonds”1) issued by the third-party trust and
securitizes these bonds via a Freddie Mac trust.
▪ The resulting Freddie Mac guaranteed structured pass-through
certificates (“K Certificates”) are publicly offered via placement
agents
▪ The unguaranteed mezzanine and subordinate bonds are
issued by the third-party trust and are privately offered to
investors via placement agents
Loans deposited
into the
third-party trust
by the depositor
Freddie Mac
acquires
Guaranteed
Bonds1
and
deposits them
into a Freddie Mac
trust
Freddie Mac sells
Guaranteed K
Certificates
backed by the
Guaranteed
Bonds
Senior Bond
Investors
Subordinate Bond Investor
Mezzanine BondInvestors
Unguaranteed Mezzanine Bonds
Unguaranteed Subordinate Bonds
Freddie Mac sells
loans to a third-
party depositor
RELEVANT PARTIES/ENTITIES
Underlying Mortgage Loan Seller
Freddie Mac
Underlying Originators
Freddie Mac Conventional and TAH
Seller/Servicers
Underlying Master Servicer
Selected by Freddie Mac through
bidding process
Underlying Special Servicer
Selected by subordinate bond
investor in consultation with Freddie
Mac
Underlying Trustee/Certificate
Administrator
Selected by Freddie Mac through
bidding process
MULTIFAMILY SECURITIZATION © Freddie Mac 40
1 Master Servicer Surveillance and Special Servicer Surveillance fees2 Guarantee Fee of 20 bps is multiplied by the outstanding principal balance of the A-1, A-2 and A-M certificates
Sample K-Deal Fixed Rate Coupon and Subordination
Primary, Master, Surveillance, Trustee and CREFC Royalty Fees
Guarantee Fee2
X2-A X2-B
X1 XAM
X3
Guaranteed Classes
Coup
on
Primary 9 bps
Master1 2 bps
Surveillance1 2 bps
Trustee 1 bp
CREFC .05 bp
Non-Guaranteed Classes
4.54%
4.40%
4.20%
4.10%
2.70%
3.50%
3.60%
7.5%10.0%14.0% 0.0%100.0%
Class D
$30
B C
A-1 A-2 A-M
$102 $103 $103 $98 $84
IO Classes
MULTIFAMILY SECURITIZATION © Freddie Mac 41
Sample K-Deal Subordination – Sequential Pay
MULTIFAMILY SECURITIZATION © Freddie Mac 42
Sample K-Deal Subordination – Pro Rata Pay
▪ Pro rata structure is commonly used for floating-rate K-Deals
▪ Principal collected is distributed pro rata, unless a Waterfall Trigger
Event has occurred and is continuing
▪ A “Waterfall Trigger Event” occurs when (i) the number of non-
specially serviced loans remaining in the pool falls below the
designated threshold as defined in the securitization documents or (ii)
the total outstanding principal balance of the non-specially serviced
loans is less than 15% of the initial total pool balance
MULTIFAMILY SECURITIZATION © Freddie Mac 43
Sample K-Deal Loss Scenarios
Assumptions
SCENARIO 1Example of Loan Loss in
Freddie Mac K-Deal
Structure
Regular interest payments of
$75mm and amortization
payments of $14mm
$8mm loss on Class D resulting
from the loss on the $23mm
defaulted loan
$15mm pay down to Class A-1
resulting from recovery on the
$23mm defaulted loan
Months 16-24
Regular interest payments of
$46mm which includes
interest attributable to the
defaulted $23mm loan (paid
via Freddie Mac Guarantee)
Regular amortization of
$12mm which does not
include principal attributable
to the defaulted $23mm loan
Month 25
A-1 + A-2 + AM
$1.059bn
B $50mm
C $50mm
D $92mm
Months 1-14 A-1 + A-2 + AM
$1.086bn
B $50mm
C $50mm
D $100mm
Month 15
A-1 + A-2 + AM
$1.100bn
B $50mm
C $50mm
D $100mm
Month 0
This loss example illustrates how the underlying certificates would be affected by loan defaults and
the Freddie Mac guarantee assuming that the Servicer is no longer making principal and interest
advances with respect to the defaulted loans. This example is hypothetical and for illustrative
purposes only. Class balances, loan balances and other mortgage pool characteristics described in
this example do not reflect those of any actual underlying certificates or any actual underlying
mortgage pools
▪ Pool Size: $1.3bn
▪ $23mm loan defaults in month 15 (prior to loan maturity)
▪ Loan sold for $15mm in month 25, $8mm loss in month 25
MULTIFAMILY SECURITIZATION © Freddie Mac 44
Sample K-Deal Loss Scenarios (continued)
Regular interest payments of
$365mm, amortization
payments of $125mm and
prepayments of $120mm
With no Class D to absorb losses,
Class C is written down by the
full amount of the $8mm loss
$15mm paydown to Class A-1
resulting from recovery on the
$23mm defaulted loan
Months 52
Regular interest payments of
$5mm which includes interest
attributable to the defaulted
$23mm loan (paid via Freddie
Mac Guarantee)
Regular amortization of
$3mm which does not include
principal attributable to the
defaulted $23mm loan
Month 53
A-1 + A-2 + AM
$837mm
B $50mm
C $42mm
D $0mm
Months 1-50 A-1 + A-2 + AM
$855mm
B $50mm
C $50mm
D $0mm
Month 51
A-1 + A-2 + AM
$1.100bn
B $50mm
C $50mm
D $100mm
Month 0
Losses of $100mm
extinguishes Class D
SCENARIO 2Example of Loan Loss in
Freddie Mac K-Deal
Structure
This loss example illustrates how the underlying certificates would be affected by loan defaults and
the Freddie Mac guarantee assuming that the Servicer is no longer making principal and interest
advances with respect to the defaulted loans. This example is hypothetical and for illustrative
purposes only. Class balances, loan balances and other mortgage pool characteristics described in
this example do not reflect those of any actual underlying certificates or any actual underlying
mortgage pools
Assumptions▪ Pool Size: $1.3bn
▪ Losses occur during the first 50 months resulting in Class D being written down to zero
▪ $23mm loan defaults in month 51 (prior to loan maturity)
▪ Loan sold for $15mm in month 53, $8mm loss in month 53
MULTIFAMILY SECURITIZATION © Freddie Mac 45
Month 121
A-1 + A-2 + AM
Paid Off
B $50mm
C $50mm
D $100mm
A-1 Paid Off
A-2 $13mm
AM $2mm
B $50mm
C $50mm
D $100mm
Month 120
A-1 + A-2 + AM
$1.100bn
B $50mm
C $50mm
D $100mm
Month 0 Month 125
A-1 + A-2 + AM
Paid Off
B Paid Off
C Paid Off
D $0mm
Sample K-Deal Loss Scenarios (continued)
Regular
payments of
interest and
principal
Balloon
payments in
month 120
pay off Class A-
1 and part of
Classes A-2
and AM
Freddie
Guarantee pays
$15mm to
Classes A-2
and AM in
month 120
Freddie
Guarantee
reimbursement
of $15mm
reduces
$165mm
recovery to
$150mm Class
B is paid off.
Class C is paid
off. Class D is
paid $50mm
and is written
down by $50mm
Months 1-119 Months 122-124
SCENARIO 3Example of Loan Loss in
Freddie Mac K-Deal
Structure
This loss example illustrates how the underlying certificates would be affected by loan defaults and
the Freddie Mac guarantee assuming that the Servicer is no longer making principal and interest
advances with respect to the defaulted loans. This example is hypothetical and for illustrative
purposes only. Class balances, loan balances and other mortgage pool characteristics described in
this example do not reflect those of any actual underlying certificates or any actual underlying
mortgage pools
Assumptions▪ Pool Size: $1.3bn
▪ All loans (with the exception of two) pay off on time in month 120
▪ $115mm and $100mm IO loan maturity defaults in month 120
▪ Loans sold for $165mm in month 125, $50mm loss in month 125
MULTIFAMILY SECURITIZATION © Freddie Mac 46
K-Deal Placement Agents
MULTIFAMILY SECURITIZATION © Freddie Mac 47
** Approximate balance as of settlement
Freddie Mac retains sole discretion over whether or not the K Certificates issuances come to market and the timing thereof, which may be impacted by market conditions.
The information contained in the 2018 K Certificates Announcement Calendar does not guarantee the timing of any future Freddie Mac offerings or the amount of such
offerings. The Calendar may be amended, superseded or replaced. This Calendar is for informational purposes only and is not an offer to sell any Freddie Mac securities.
K-Deal 2018 Second Quarter Announcement Calendar
Deal
Name
Announcement
Week Of
Freddie Mac
Program
Collateral
Rate Type
Collateral
Loan Term
Projected Issuance
Size (Millions)
K-731 April 2, 2018 Conventional Fixed 7-year $1,249**
K-75 April 16, 2018 Conventional Fixed 10-year $1,297**
K-F45 May 14, 2018 Conventional Floating 7-year $1,100
K-X03 May 14, 2018 Conventional Various Various $850
K-76 May 21, 2018 Conventional Fixed 10-year $1,275
K-F46 May 21, 2018 Conventional Floating 10-year $1,200
K-W05 June 4, 2018 ConventionalFixed &
FloatingVarious $575
K-1505 June 4, 2018 Conventional Fixed 15-year $900
K-77 June 11, 2018 Conventional Fixed 10-year $1,250
K-F47 June 18, 2018 Conventional Floating 7-year $1,100
K-732 June 18, 2018 Conventional Fixed 7-year $1,150
MAY
M T W TH F
1 2 3 4
7 8 9 10 11
14 15 16 17 18
21 22 23 24 25
H 29 30 31
CALENDAR KEY
OPTIONAL
K CERTIFICATES
ANNOUNCEMENT
WEEK
H = U.S. HOLIDAY
A
We provide a calendar of upcoming offerings on freddiemac.com/multifamily
JUNE
M T W TH F
1
4 5 6 7 8
11 12 13 14 15
18 19 20 21 22
25 26 27 28 29
APRIL
M T W TH F
2 3 4 5 6
9 10 11 12 13
16 17 18 19 20
23 24 25 26 27
30
A
A A
A
A
A
A
48
Freddie Mac Multifamily Competition
MULTIFAMILY SECURITIZATION © Freddie Mac 49
Competition
Fannie Mae
▪ Fannie Mae’s Delegated Underwriting and Servicing (DUS) program allows pre-approved
lenders to underwrite guaranteed loans on behalf of Fannie Mae
▪ Each individual loan is generally sold as a one-off DUS MBS
▪ Fannie Mae guarantees timely principal and interest on DUS MBS
▪ Loss sharing is split between the lender and Fannie Mae (e.g., 1/3 loss to lender,
2/3 to Fannie Mae)
DUS MBS
▪ Pass-thru cash flows versus structured cash flows
on Freddie Mac K-Deals
▪ Fixed-rate DUS MBS is typically call protected with
yield maintenance instead of defeasance as on
Freddie Mac K-Deals
▪ Delinquencies are paid off at par by Fannie Mae
after a series of missed payments, not worked out in
the trust like Freddie Mac K-Deals
▪ Individual loans lack geographic diversity and have
binary prepayment risk
GEMS
▪ Repackaging of DUS MBS by Fannie Mae into a
REMIC structure
▪ Structures differ from deal to deal and based on the
collateral mix compared to relatively static structures
for Freddie Mac K-Deals
▪ GeMS likely have lower secondary liquidity.
Issuance volume in 2016 was $11.6 billion versus
$47.3 billion for Freddie Mac K-Deals
50
Freddie Mac
Multifamily Investor Resources
MULTIFAMILY SECURITIZATION © Freddie Mac 51
1 Data reflects senior bond allocations YTD for deals closed through March 31, 2018
Investor Overview
▪ 247 investors historically, with 76 participating in 2018 through
Q1
▪ Average of 24 different accounts per transaction historically,
with 41 per transaction in 2018 through Q1
▪ 9 subordinate investors historically, with 4 participating in
2018 through Q1
▪ Average of 6 new investors per transaction in 2018 through
Q1, including 19 new investors in the program YTD
Since the SB-Deal program’s inception in 2015, the investor base
has grown significantly:
▪ 518 investors historically, with 134 participating in 2018
through Q1
▪ Average of 30 different accounts per transaction historically,
28 per transaction in 2018 through Q1
▪ 48 subordinate investors historically, with 11 participating in
2018 through Q1
Since the K-Deal program’s inception in 2009, the investor base
has grown significantly:
Bank62%
Money Manager
28%
Insurance Company/Pension
Plan9%
Hedge Fund1%
K-Deal Investors by Type1
Bank68%
Money Manager
19%
Insurance Company/Pension
Plan12%
Hedge Fund1%
SB-Deal Investors by Type1
MULTIFAMILY SECURITIZATION © Freddie Mac 52
K and SB-Deal Investor Participation
A total of 268 accounts purchased K-Deal bonds and 174 accounts purchased SB-Deal Bonds in 2017, with an average of 29 different investors on each deal
(averages for K, SB, and Combined).
We continue to build on our K and SB-Deal brands – growing our securitization volumes
and investor base
173 222 218
22
33 49
13
82
124
31
60
122
167
141 146
208
337
391
0
50
100
150
200
250
300
350
400
2009 2010 2011 2012 2013 2014 2015 2016 2017
Investor Participation
K Investors Both Programs SB Investors (beginning 8/2015)
MULTIFAMILY SECURITIZATION © Freddie Mac 53
1 The Multifamily Loan Performance Database (MLPD) provides historical information on a subset of the Freddie Mac multifamily loan portfolio. The MLPD comprises
information regarding certain multifamily whole loan, K-Deal and SBL-Deal loans. It excludes loans that are credit revolvers, sold book (pre-1994) loans, and negotiated
transactions/structured deals and K001 and K002.
Resources - Multifamily Loans Performance Database1
Multifamily Loan Performance Database (MLPD) is available on FreddieMac.com. It provides quarterly performance
information on Freddie Mac's loans which includes more than 28,000 loans with a total origination UPB of over $360 billion
that were purchased by Freddie Mac from 1994 through the end of 2017 Q4.
Of this reported population, approximately 0.21% has defaulted by UPB through the end of 2017 Q4
MULTIFAMILY SECURITIZATION © Freddie Mac 54
ISSUANCE CALENDARS
K-Deals, ML-Deals and SB-
Deals. For other types of deals,
please contact us
PRESENTATIONS AND DATA
Provide important current and
historical information about
securities and other offerings
LOOKUP TOOLS
Multifamily Securities Investor
Access (MSIA) online tool that
provides investors and analysts
with information related to
Freddie Mac Multifamily K-Deal,
Q-Deal and SB-Deal securities
and their underlying collateral
Resources - Multifamily Securities Information on FreddieMac.com
www.freddiemac.com/multifamily/investors /
DETAILED INFORMATION
Securities offered by Freddie
Mac Multifamily, including K
and KT Certificates, SB
Certificates, Q Certificates, M
Certificates and ML Certificates
LINKS TO OUR RECENT
HEADLINES
This section offers our latest
news releases
On our website,
you will find
useful
information on
products offered
by Freddie Mac
Multifamily
Investor Inquiries
MULTIFAMILY SECURITIZATION © Freddie Mac 55
Standard Investor Reporting Package
provided on a monthly basis by the
Master Servicer and Trustee for a given
security issuance
K-Deal Supplemental Mortgage Report
Resources - Multifamily Securities Information on FreddieMac.com
(continued)
https://FM-MSIA.com
Multifamily Securities Investor Access (MSIA) is an online tool that provides investors and
analysts with information related to Freddie Mac’s K-Deals, ML-Deals, Q-Deals SB-Deals and
PCs securities and their underlying collateral. It also provides information about SCR Notes
For a single deal or a portfolio, this tool provides a combination of standard and
custom reporting capabilities:
Available data
includes
» Bond Level Data
» Collateral Summary
» Delinquent Loan Status Report
» Distribution Date Statement (PDF)
» Distribution Date Statement (XLS)
» Financial File
» Loan Periodic Data
» Operating Statement Analysis
Report (PDF)
» Operating Statement Analysis
Report (XLS)
» Property Summary
» Restricted Servicer Reports
MULTIFAMILY SECURITIZATION © Freddie Mac 56
Resources - Multifamily Research
Profile of Today's Renter
Steve and Aaron Discuss National Disasters
2018 Multifamily Year Outlook
Our in-house research team led by
Steven Guggenmos provides
research publications about the
multifamily market
www.freddiemac.com/multifamily/aimi/
The Freddie Mac Multifamily
Apartment Investment Market
IndexSM (AIMISM) can help you
determine how the relative value of
investing in multifamily properties in
select major metros, and nationally,
has changed over time
www.freddiemac.com/multifamily/news/subscribe.htmlMultifamily news email sign-up
57
Recent Transaction Highlights
APPENDIX I
MULTIFAMILY SECURITIZATION © Freddie Mac 58
K-074
Transaction Highlights
Class
Initial Principal or
Notional Amount
Pricing
Spread
Assumed
Weighted
Average Life
A-1 $122,264,000 S+39 6.75
A-2 $1,043,000,000 S+48 9.79
A-M $68,123,000 S+54 9.85
X1 $1,165,264,000 T+90 9.09
XAM $68,123,000 T+68 9.60
X3 $200,784,842 T+275 9.86
Total Guaranteed $1,233,387,000
Offered K-074 Certificates:
Deal Characteristics 1
Collateral Type Multifamily Fixed-Rate Mortgage Loans
Collateral Structure Type Balloon
Mortgaged Loans 81
Initial Underlying Pool Balance $1,434,171,842
Rating Agencies Fitch/Morningstar
Waterfall Structure Sequential
Top 5 State Concentrations CA (15.3%), TX (9.0%), WA (8.3%),
NJ (8.3%), KS (5.5%)
WA Mortgage Interest Rate 4.230%
WA Original Maturity 121 months
WA DSCR 1.37x
WA LTV 68.9%
Classes
A-1, A-2,
A-M, X1,
XAM &
X3Freddie
Mac
(Mortgage
Loan
Seller)
Freddie
Mac SPC
Trust,
Series
K-74
Classes
A-1, A-2,
A-M, X1,
XAM &
X3
Investors
(including
Freddie
Mac)
InvestorsClasses
B and C
FREMF
2018-
K74
Mortgage
Trust
InvestorsClass D
1 As of the Cut-off Date2 As of the Closing Date
Overview of Deal Structure (Pricing Date: March 20, 2018) Structural Diagram
Breakdown of Investors (Classes A-1, A-2, A-M, B and C) 2
Money Manager
36%
Bank23%
Other23%
Insurance Company/Pension
Plan17%
Hedge Fund1%
MULTIFAMILY SECURITIZATION © Freddie Mac 59
Bank48%
Hedge Fund< 1%Insurance Company/Pension Plan
11%
Money Manager
30%
Other11%
K-730
Transaction Highlights
Classes
A-1, A-2,
A-M, X1,
X3 &
XAMFreddie
Mac
(Mortgage
Loan
Seller)
Freddie
Mac SPC
Trust,
Series
K-730
Classes
A-1, A-2,
A-M, X1,
X3 &
XAM
Investors
(including
Freddie
Mac)
InvestorsClasses
B and C
FREMF
2018-
K730
Mortgage
Trust
InvestorsClass DDeal Characteristics1
Collateral Type Multifamily Fixed-Rate Mortgage
Loans
Collateral Structure Type Balloon
Mortgaged Loans 52
Initial Underlying Pool Balance $1,470,539,202
Rating Agencies Moody’s/S&P
Waterfall Structure Sequential
Top 5 State Concentrations CA (16.8%), AZ (8.9%), WA (8.9%),
IL (7.5%), FL (7.2%)
WA Mortgage Interest Rate 3.927%
WA Original Maturity 82 months
WA DSCR 1.59x
WA LTV 67.8%
1As of the Cut-off Date2As of the Closing Date
Overview of Deal Structure (Pricing Date: February 28, 2018) Structural Diagram
Breakdown of Investors (Classes A-1, A-2, A-M, B and C)2
Class
Initial Principal or
Notional Amount
Pricing
Spread
Assumed
Weighted
Average Life
A-1 $166,561,000 S+15 3.90
A-2 $1,030,090,000 S+31 6.73
A-M $68,012,000 S+39 6.87
X1 $1,196,651,000 T+68 6.34
XAM $68,012,000 T+58 6.87
X3 $205,876,201 T+210 6.87
Total Guaranteed $1,264,663,000
Offered K-730 Certificates:
MULTIFAMILY SECURITIZATION © Freddie Mac 60
K-F44
Transaction Highlights
Classes
A, XI &
XP
Freddie
Mac
(Mortgage
Loan
Seller)
Freddie
Mac SPC
Trust,
Series
K-F44
Classes
A, XI &
XP
Investors
(including
Freddie
Mac)
InvestorsClass B
FREMF
2018-
KF44
Mortgage
Trust
InvestorsClass C
Deal Characteristics 1
Collateral Type Multifamily Floating-Rate Mortgage
Loans
Collateral Structure Type Balloon
Mortgaged Loans 74
Initial Underlying Pool Balance $1,470,512,356
Rating Agencies Not Rated
Waterfall Structure Pro Rata
Top 5 State Concentrations TX (18.0%), GA (11.5%), FL (10.5%),
VA (9.6%), NV (9.4%)
WA Original Maturity 84 months
WA DSCR 1.40x
WA LTV 70.9%
1 As of the Cut-off Date2 As of the Closing Date
Overview of Deal Structure (Pricing Date: March 13, 2018) Structural Diagram
Breakdown of Investors (Classes A and B) 2
Class
Initial Principal or
Notional Amount
Discount
Margin
Assumed
Weighted
Average Life
A $1,323,461,000 19 6.54
XI $1,470,512,356 N/A 6.54
XP $1,470,512,356 N/A N/A
Total Guaranteed $1,323,461,000
Offered K-F44 Certificates:
Bank94%
Insurance Company/Pension
Plan3%
Money Manager2%
Other1%
MULTIFAMILY SECURITIZATION © Freddie Mac 61
K-J19
Transaction Highlights
1 As of the Cut-off Date2 As of the Closing Date
Structural Diagram
Breakdown of Investors (Classes A-1, A-2, and A-FL) 2
Deal Characteristics 1
Collateral Type Multifamily Supplemental Mortgage
Loans
Collateral Structure Type Balloon
Mortgaged Loans 60
Initial Underlying Pool Balance $290,975,177
Rating Agencies Not Rated
Waterfall Structure Pro Rata
State Concentration CA (15.0%), TX (13.4%), WA
(10.3%), CO (10.1%), FL (7.8%)
WA Mortgage Interest Rate 5.256%
WA Original Maturity 69 months
WA DSCR 1.41x
WA LTV 66.4%
Bank28%
Insurance Company/Pension
Plan16%
Money Manager
31%
Other25%
Class
Initial Principal or
Notional Amount
Pricing
Spread
Assumed
Weighted
Average Life
A-FL $122,297,000 L+23 4.85
XI $143,879,582 N/A 4.88
XP $143,879,582 N/A N/A
A-1 $45,782,000 S+17 3.50
A-2 $71,894,000 S+25 4.56
X $147,095,595 N/A 4.15
Total Guaranteed $239,973,000
Offered K-J19 Certificates:
Overview of Deal Structure (Pricing Date: March 15, 2018)
Classes
A-1, A-2,
X, A-FL,
XI & XP
Freddie
Mac
(Mortgage
Loan
Seller)
Freddie
Mac SPC
Trust,
Series
K-J19
Classes
A-1, A-2,
X, A-FL,
XI & XP
Investors
(including
Freddie
Mac)FREMF
2018-
KJ19
Mortgage
Trust
Classes
B-FX &
B-FL
Investors
MULTIFAMILY SECURITIZATION © Freddie Mac 62
SB47
Transaction Highlights
3 Assumes a 5% CPR prepayment speed until the earlier of each underlying loan’s maturity date or first interest reset date, at which time the loan is assumed to pay in full4 Waterfall structure will change from pro rata to sequential upon the earlier of (i) the aggregate Stated Principal Balance of the underlying loans as of the related
determination date is less than or equal to 15% of the initial Principal Balance of the pool (ii) aggregate loans that are at least 60 days delinquent is greater than 4% of
pool balance UPB or (iii) the Class B percentage is less than 7.5% as of the related distribution date
Classes
A-5H, A-7F
A-10F, &
X1Freddie
Mac
(Mortgage
Loan Seller)
Investors
(including
Freddie
Mac)
FRESB
2018-SB47
Mortgage
Trust
Class B Investors
Deal Characteristics1
Collateral Type Multifamily Small Balance Loans
Initial Underlying Pool Balance $552,597,492
Mortgage Loans 209
Rating Agencies Not Rated
WA Initial Fixed Mortgage Interest Rate 4.069%
WA DSCR 1.36x
WA LTV 67.2%
WA Original Maturity 164 Months
Waterfall Structure Pro Rata4
Top 5 State Concentrations NY (22.9%), CA (12.9%), TX (8.5%),
IL (8.3%), FL (5.5%)
Overview of Deal Structure (Pricing Date: March 15, 2018) 3 Structural Diagram
Bank78%
Insurance Company/Pension
Plan15%
Money Manager
7%
Breakdown of Investors (Classes A-5H, A-7F, A-10F) 2
1 As of the Cut-off Date2 As of the Closing Date
Class
Initial Principal or
Notional Amount
Pricing
Spread
Assumed
Weighted
Average Life
A-5H $200,477,296 S+29 4.03
A-7F $66,219,027 S+35 5.52
A-10F $230,641,419 S+52 7.29
X1 $552,597,491 N/A 5.74
Total Guaranteed $497,337,742
Offered FRESB 2018- SB47 Certificates:
MULTIFAMILY SECURITIZATION © Freddie Mac 63
K-W04
Transaction Highlights
Classes
A & X
Freddie
Mac
(Mortgage
Loan
Seller)
Freddie
Mac SPC
Trust,
Series
K-W04
Classes
A & X
Investors
(including
Freddie
Mac)FREMF
2018-
KW04
Mortgage
Trust
Investors
Class B
Class C,
X2-A and
X2-BDeal Characteristics1
Collateral Type Multifamily Workforce Housing
Mortgage Loans
Collateral Structure Type Balloon
Mortgaged Loans 42
Initial Underlying Pool Balance $631,496,341
Rating Agencies Not Rated
Waterfall Structure Sequential
Top 5 State Concentrations CO (12.1%), MA (9.8%), OH (8.3%),
GA (7.9%), OK (7.6%)
WA Mortgage Interest Rate 4.164%
WA Original Maturity 117 months
WA DSCR 1.35x
WA LTV 73.8%
1 As of the Cut-off Date2 As of the Closing Date
Overview of Deal Structure (Pricing Date: March 21, 2018) Structural Diagram
Breakdown of Investors (Classes A and B)2
Class
Initial Principal or
Notional Amount
Discount
Margin
Assumed
Weighted
Average Life
A $568,346,000 24 8.72
X $631,496,341 N/A 9.06
Total Guaranteed $568,346,000
Offered K-W04 Certificates:
Money Manager
1%
Insurance Company/Pension Plan
2%
Bank94%
Hedge Fund3%
64
Multifamily Team
APPENDIX II
MULTIFAMILY SECURITIZATION © Freddie Mac 65
Multifamily Line of Business
Market, originate and
structure loan
products; ensure
volume, profitability
and affordable
housing targets are
met; manage
relationships with
Sellers and Borrowers
Perform all portfolio
management, valuation
and costing of
Multifamily assets.
Establish and execute
investments, funding
and hedging policies and
transactions.
Develop and manage
Multifamily models and
analytical capabilities
Perform pricing and
securitization
functions related to
Multifamily
mortgage purchases
intended for
securitization and
new issue
securities. Manage
investor relations,
securities marketing
and relationships
with bankers
Deliver consistent and
high quality transactions
to the firm by analyzing
transaction strengths and
weaknesses and
approving the
creditworthiness of each
loan transaction.
Responsible for loan level
due diligence, credit
functions within
securitization and risk
transfer processes and
credit policies
Establish, manage
and implement
divisional strategy
and administration
activities. Manage
new business
initiatives process,
customer
communications,
marketing, training
and events
Manage Servicer relationship
and Seller/Servicer
performance reviews.
Manage ongoing risk and loss
mitigation efforts for the
Multifamily portfolio through a
risk-based approach. Manage
and implement business
transformation including
strategic planning, systems
and processes. Manage loan
funding and document
custody, loan servicing,
Seller/Servicer counterparty
risk, data management,
governance and operational
risk
Susan MudryVice President
Business
Management
Victor PaVice President
MF Investments
& Advisory
Robert KoontzVice President
MF Capital
Markets
David LeopoldVice President
Affordable Sales
& Investments
John CannonSr. Vice
President
Production &
Sales
Leanne SpiesSr. Vice
President
MF Asset Mgmt.
& Operations
Debby JenkinsSr. Vice President
Underwriting &
Credit
Bill Buskirk
Vice President
Multifamily CFO
Robert Gundry
Vice President
Enterprise
Commercial RE
Credit Risk
Jeff Markowitz
Senior Vice
President
Corporate
Communication
Vice President
Human
Resources
Melissa ChiariVice President
Information
Technology
Tim O’Neill
Vice President
Legal
David BrickmanExecutive Vice President
and Head of the
Multifamily Line of
Business
Multifamily Line of Business Partners
Freddie Mac Multifamily operates as a fully integrated line of business and has a largely
independent operating infrastructure
MULTIFAMILY SECURITIZATION © Freddie Mac 66
Multifamily Team
David M. Brickman
Executive Vice President Multifamily
David Brickman is executive vice president and leads all aspects of Freddie Mac’s Multifamily business – one of the largest
capital providers to the U.S. multifamily rental housing market. He is a member of the company’s senior operating committee
and reports directly to CEO Don Layton.
David presided over significant growth in the Multifamily business – raising annual production from $16 billion in 2010 to
$73.2 billion in 2017 and increasing the organization’s staff members from approximately 300 people in four offices to more
than 900 in a dozen locations across the country. He firmly established Freddie Mac Multifamily' s flagship K-Deal
securitization program as one of the leading securitized products in the structured finance markets.
Before becoming the head of Multifamily, David served as senior vice president and, prior to that, vice president in charge of
our Multifamily Capital Markets business area. In this position, David oversaw all functions related to Freddie Mac’s
multifamily and CMBS investment and capital markets activities. He is also the key architect behind several of Freddie Mac’s
innovative multifamily financing products, including the Capital Markets Execution and K-Deal securitization program,
Reference Bill ARM, fixed-to-float suite of products, and Performance-Based PC, for which he holds a U.S. patent.
Prior to joining Freddie Mac in 1999, David co-led the Mortgage Finance and Credit Analysis consulting group at
PricewaterhouseCoopers.
David has completed all doctoral coursework for his Ph.D. in economics and real estate at the Massachusetts Institute of
Technology. He holds a master’s degree in public policy from Harvard University and a bachelor’s degree from the University
of Pennsylvania. He has held appointments as a professorial lecturer in finance at The George Washington University and as
an adjunct professor of finance at Johns Hopkins University.
MULTIFAMILY SECURITIZATION © Freddie Mac 67
Multifamily Team (cont’d)
Debby Jenkins, Senior Vice President and National Head
of Multifamily Underwriting & Credit
Debby Jenkins manages the underwriting and credit (UW&C) approvals
for all Multifamily debt investments, and the UW&C staff at our offices
across the country. She also managed and developed the underwriting
process for multifamily loans eligible for securitization. Before joining
Freddie Mac in 2008, Debby worked at Wells Fargo and Bloomfield
Acceptance Company. She holds a B.S. in corporate finance from
Wayne State University and an M.S. in corporate finance from Walsh
College.
Leanne Spies, Senior Vice President
Multifamily Asset Management & Operations
Leanne Spies leads the team responsible for asset management and
the operations of our servicing portfolio, ensuring sound business
management and a responsive experience for customers. Her team
manages our loan purchases and funding, investor reporting and
remitting, the cash desk, records and data management, and
operational close. She also manages Seller/Servicer eligibility,
performance and audit reviews, and the Multifamily Seller/Servicer
Guide. Leanne holds a bachelor’s degree from Virginia Tech’s Pamplin
College of Business.
John Cannon, Senior Vice President
Production & Sales
John Cannon is our main voice in the origination market and defines
our Multifamily customer service culture. He leads the production and
sales team that purchases conventional multifamily mortgages,
manages our network of approved conventional lenders, shapes our
competitive position in the marketplace, and works directly with lenders
and Borrowers on deals. He holds a B.A. in international studies from
Lafayette College and an M.S. in finance from Drexel University’s
LeBow College of Business.
MULTIFAMILY SECURITIZATION © Freddie Mac 68
Multifamily Team (cont’d)
Alex Chang, Vice President
Multifamily Underwriting & Credit
Alex Chang oversees the Risk Distribution and Credit Team (formerly
Capital Markets Execution (CME) Underwriting) and the Multifamily
Credit Policy Team. In early 2009, he joined the CME underwriting
team, which he was instrumental in building, and helped develop the
processes and infrastructure for our K-Deal program’s asset-level due
diligence. He holds a B.A. in finance and East Asian studies from the
University of Virginia and an M.S. in finance from American University.
Lauren Garren, Vice President
Multifamily Production & Sales
Lauren Garren leads the Structured Transaction group working with
Seller/Servicers and their Borrowers to develop creative and unique
structures that meet Borrowers’ evolving needs; and Production
Operations managing the Select Sponsor program, divisionwide process
improvements, and internal and external performance goals. Lauren has
been at Freddie Mac for over 12 years. She holds a B.S. in accounting
from Virginia Tech’s Pamplin College of Business and an M.S. in
finance from American University.
Peter Giles, Vice President
Production & Sales
Peter Giles leads our teams in the Central and Western Regions that
work with approved Seller/Servicers for conventional and senior housing
loans and their Borrowers to source loans to Freddie Mac Multifamily.
He also leads a team supporting manufactured housing communities.
Peter joined Freddie Mac Multifamily in 1998, with prior experience in
the commercial mortgage banking industry working for Metmor Financial
Inc., Mellon Mortgage Company and Great Lakes Financial Group LLC.
He attended the University of Oklahoma.
Kelli Carhart, Vice President
Production & Sales
Kelli Carhart is responsible for overseeing originations in the Central
Region, and manages a production team in Chicago and in the Texas
offices of Austin, Houston and Dallas. Kelli is also actively involved in
Freddie Mac’s student housing platform, serving as Freddie Mac’s
student housing representative for the Central and Western Regions.
She holds a Bachelor of Business Administration in finance, real estate
and urban land economics from the University of Wisconsin-Madison.
MULTIFAMILY SECURITIZATION © Freddie Mac 69
Multifamily Team (cont’d)
Steve Guggenmos, Vice President
Research & Modeling
Steve Guggenmos leads multifamily research at Freddie Mac,
performing research related to national and market-specific multifamily
conditions. His team develops models that determine risk-based capital
allocations and the benefits of diversification and structural credit
support for multifamily mortgages. Steve holds a B.A. in economics from
the University of Nebraska-Lincoln, an M.A. in economics from
American University and an M.S. in finance from The George
Washington University.
Christine Halberstadt, Vice President
Multifamily Asset Management
Christine Halberstadt leads the Servicer & Client Management team that
handles customer relationships, Seller/Servicer Performance Reviews,
insurance, loan boarding and monitoring activities. She directs strategic
planning and initiative delivery for Multifamily. Before Freddie Mac,
Christine was with National City’s Capital Markets and Accenture. She
has an MBA and B.S. degree in business administration and economics
from Carnegie Mellon University and a master’s in real estate from
Georgetown University.
Stephen Johnson, Vice President
Small Balance Loan Business
Stephen Johnson leads the Small Balance Loan (SBL) business line by
overseeing the development and implementation of innovations to
improve the speed and flow of capital nationwide, and addressing the
rapidly evolving needs of Multifamily customers in this space. Stephen
also oversees lender relationship management, performance
management, and overall line-of-business economics. He earned a B.A.
in government from the University of Virginia.
Robert Koontz, Vice President
Multifamily Capital Markets
Robert Koontz leads the Multifamily Capital Markets team. He manages
relationships with securities investors, credit rating agencies and the
broker/dealer community. Robert helped develop new securities
structures and capital-market innovations. Before Freddie Mac, he was
a vice president at Wachovia Securities and Banc of America Securities.
Robert holds a master's degree in real estate from Georgetown
University and a B.S. in business administration – finance from the
University of South Carolina-Columbia.
MULTIFAMILY SECURITIZATION © Freddie Mac 70
David Leopold, Vice President
Affordable Housing Production
David Leopold manages all relationships, transactions and deal
negotiations for the affordable housing business involving targeted
affordable lenders, affordable borrowers and LIHTC syndicators. He is
the lead contact with housing finance agencies, municipalities and
community-based organizations in community development products,
programs and services. David is a licensed financial advisor and has
undergraduate and graduate degrees from Fordham University and the
University of Colorado, respectively.
Multifamily Team (cont’d)
Richard Martinez, Vice President
Production & Sales
Richard Martinez leads our teams in the Northeast and Southeast
Regions that work with approved Seller/Servicers for conventional loans
and their Borrowers to source a steady flow of high-quality loans to
Freddie Mac Multifamily. His team also manages our nationwide
program for student housing. Richard earned a Bachelor of Arts in
history from Saint Louis University and a Master of city and regional
planning from Harvard’s Kennedy School of Government.
Stephen Lansbury, Vice President
Underwriting
Steve Lansbury directs our conventional loan underwriting process,
working with approved Seller/Servicers, their Borrowers, and our
production and sales staff to source loans to Freddie Mac Multifamily.
He played an integral role in creating process efficiencies, providing new
offerings for our customers, and re-orienting the underwriting model to
produce loans for securitization, chiefly through our K-Deal program.
Lansbury earned a B.A. from the University of Virginia.
Carl McLaughlin, Vice President
Loan Servicing
Carl McLaughlin is responsible for all loan servicing operations and loan
administration. He joined Freddie Mac’s Single Family division 17 years
ago as a Mortgage Purchase Analyst. He later became an Operational
Risk Manager, where he helped manage, and eventually directed,
operational risk across various Single Family and Multifamily operational
risk types and internal organizations. Carl earned his B.S. in business
management from North Carolina Agricultural and Technical State
University.
MULTIFAMILY SECURITIZATION © Freddie Mac 71
Susan Mudry, CFA®, Vice President
Business Management
Susan Mudry leads the teams in charge of offerings management,
regulatory relations, business communications and customer marketing.
Susan and her teams facilitate the development of business strategy,
work with our regulator, coordinate how we bring new initiatives to
market, and manage our brand, websites, events and training. She has
been with Freddie Mac for over 20 years. Susan earned a B.A. in
economics from Dartmouth College and holds a Chartered Financial
Analyst designation.
Multifamily Team (cont’d)
Michael Patterson, Vice President
Multifamily Underwriting
Michael Patterson is a 20 plus-year veteran of Freddie Mac with
achievements across capital markets and sourcing. As the head of
specialty products underwriting, he works to strengthen relationships
with lenders and Borrowers by offering innovative credit solutions.
Michael has guided the underwriting growth for our more specialized
businesses, including Targeted Affordable Housing, Seniors Housing
and Structured Transactions. He holds a B.A. in international affairs
from The George Washington University.
Victor Pa, CFA®, Vice President
Multifamily Investments & Advisory
Victor Pa manages Freddie Mac’s more than $150 billion Multifamily
and CMBS portfolio and the securitization and securities trading
functions for multifamily mortgages and securities. He brings 20 years of
experience and has a strong background in portfolio management,
structuring of mortgage cash flows, analysis of credit and market risks,
and structured pricing. Victor holds an MBA in finance and a B.S. in
engineering, both from Virginia Tech, and the Chartered Financial
Analyst designation.
Aaron Dunn, Senior Director
Multifamily Capital Markets
Aaron Dunn manages fixed-income and real estate investors who
participate in our securitization program. In addition to K Certificates, he
leads the creation of mortgage-backed securities supporting student
housing, independent and assisted living facilities, small balance
apartments, MHCs and workforce housing. Before Freddie Mac, Aaron
was managing director of Commercial Capital Markets for Redwood
Trust. He holds a B.A. in economics from the University of Chicago and
an MBA from Northwestern University.
MULTIFAMILY SECURITIZATION © Freddie Mac 72
Multifamily Line of Business Partners
Robert Gundry, Vice President
Enterprise Commercial Real
Estate Risk Officer
Bob Gundry is responsible for risk
management oversight and
effective challenge to the
company's Multifamily Division
covering risk policy, portfolio risk,
large transaction approvals,
portfolio analytics and credit risk
transfer reporting/analytics. Bob
brings to Freddie Mac 35 years of
commercial real estate
experience in portfolio lending
and capital market executions. He
graduated from the University of
Southern California with a B.S. in
Finance and Quantitative
Methods.
Bill Buskirk, Vice President
Multifamily Segment CFO
Bill Buskirk is responsible for the
accounting, financial and
management reporting function of
Freddie Mac’s Multifamily line of
business that supports the
acquisition, refinance,
rehabilitation, and construction of
apartment communities. Bill has
been with Freddie Mac for 15
years serving in various roles
within the Finance group. He
holds a B.S. from the University of
Delaware, is a certified public
accountant and holds the
chartered financial analyst
designation.
Tim O’Neill, Vice President
Deputy General Counsel
Tim O’Neill is a vice president
and deputy general counsel in
the Legal Department of
Freddie Mac where he is
responsible for managing a
team of 27 attorneys, together
with managers, paralegals and
analysts who support the
purchase, sale and servicing of
Multifamily loans. Tim has
been at Freddie Mac for 25
years. He has a law degree
from Temple University and
completed his undergraduate
work at Haverford College.
Melissa Chiari, Vice President
Business Technology Officer & Service Delivery
Officer App Management & Testing
Melissa Chiara is responsible for partnering with
Freddie Mac’s Multifamily division to develop and
execute its long-term road map and technology
strategy. In this role, she oversees application
development, implementation and maintenance
services, and ensures continued progress in
developing a higher-performing solution delivery
organization with a primary focus on enabling
business results. With more than 20 years of IT
experience, Melissa has worked at Freddie Mac for
over 10 years. Melissa earned a B.A. from Virginia
Tech.
Jeffrey Markowitz, Senior Vice President
External Relations & Corporate Communications
In his role as SVP, Jeffrey Markowitz oversees
Congressional, State and Industry Relations, which
includes the company’s work with trade groups
representing homebuilders, realtors, lenders, and
housing advocates. He also oversees Public Relations
and Social Media, Marketing, Internal Communications,
Market Research and the company’s web presence.
He began his work at Freddie Mac in the Legal Division,
where he worked on fair lending, affordable housing, and
a variety of other legislative and regulatory issues. Jeffrey
is a graduate of the Yale Law School and holds a degree
in Business Administration from Georgetown University.
MULTIFAMILY SECURITIZATION © Freddie Mac 73
This product overview is not an offer to sell or a solicitation of an offer to buy any Freddie Mac securities. Offers for any given security are made only
through applicable offering circulars and related supplements, which incorporate Freddie Mac’s Annual Report on Form 10-K and certain other reports
filed with the Securities and Exchange Commission. This document contains information related to, or referenced in the offering documentation for,
certain Freddie Mac mortgage securities. This information is provided for your general information only, is current only as of its date and does not
constitute an offer to sell or a solicitation of an offer to buy securities. The information does not constitute a sufficient basis for making a decision with
respect to the purchase and sale of any security and is directed only at, and is intended for distribution to and use by, qualified persons or entities in
jurisdictions where such distribution and use is permitted and would not be contrary to law or regulation. All information regarding or relating to Freddie
Mac securities is qualified in its entirety by the relevant offering circular and any related supplements. You should review the relevant offering circular
and any related supplements before making a decision with respect to the purchase or sale of any security. In addition, before purchasing any security,
please consult your legal and financial advisors for information about and analysis of the security, its risks and its suitability as an investment in your
particular circumstances. The examples set forth above are for illustrative purposes only. Opinions contained in this document are those of Freddie Mac
currently and are subject to change without notice. Please visit mf.freddiemac.com for more information.
MULTIFAMILY SECURITIZATION © Freddie Mac