SOURCE: Freddie Mac

Freddie Mac

November 17, 2015 11:19 ET

Eighth Freddie Mac Guaranteed Multifamily Small Balance Loan Securitization Prices

MCLEAN, VA--(Marketwired - Nov 17, 2015) - Freddie Mac (OTCQB: FMCC) announces the pricing of a new offering of Structured Pass-Through Certificates (SB-008 Certificates), a multifamily mortgage-backed securitization backed by small balance loans originated by First Foundation Bank and re-underwritten by Freddie Mac. The company expects to issue approximately $92 million in SB-008 Certificates, which are anticipated to settle on or about November 24, 2015. This is the eighth SB-Deal the company has brought to the market since August.

SB-008 Pricing

                         
Class   Principal/Notional Amount (mm)   Weighted Average Life (Years)   Spread (bps)   Coupon   Yield   Dollar Price
A-5   $65.972   2.83   S + 120   2.4200%   2.3811%   $99.9760
A-7   $15.438   3.84   S + 125   2.7000%   2.6655%   $99.9981
A-10   $10.412   6.03   S + 150   3.2900%   3.2721%   $99.9950
X1   $102.026   3.40   Non-Offered            
                         

Details

The SB-008 Certificates will not be rated and include three senior principal and interest classes and one interest only class. The SB-008 Certificates are backed by corresponding classes issued by the FRESB 2015-SB8 Mortgage Trust (SB8 Trust) and are guaranteed by Freddie Mac. The SB8 Trust will also issue certificates consisting of the Class X2, B and R Certificates, which will be subordinate to the classes backing the SB-008 Certificates. The SB8 Trust Class X2, B and R Certificates will not be guaranteed by Freddie Mac.

The Small Balance Loan (SBL) origination initiative was first announced in October 2014, and expands the company's continuing effort to better serve less populated markets and provide additional liquidity to smaller apartment properties. Loans in the program generally range from $1 million to $5 million and have five or more units. Freddie Mac has a specialty network of Seller/Servicers and SBL lenders with extensive experience in this market who source loans across the country. Freddie Mac purchases and aggregates loans by seller and will then securitize each seller's deals when pool sizes are generally more than $100 million.

This announcement is not an offer to sell any Freddie Mac or other issuer's securities. Offers for any given security are made only through applicable offering circulars and related supplements, which may incorporate Freddie Mac's Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission (SEC) on February 19, 2015; all other reports Freddie Mac filed with the SEC pursuant to Section 13(a) of the Securities Exchange Act of 1934 (Exchange Act) since December 31, 2014, excluding any information "furnished" to the SEC on Form 8-K; and all documents that Freddie Mac files with the SEC pursuant to Sections 13(a), 13(c) or 14 of the Exchange Act, excluding any information furnished to the SEC on Form 8-K.

Freddie Mac's press releases sometimes contain forward-looking statements. A description of factors that could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements can be found in the company's Annual Report on Form 10-K for the year ended December 31, 2014, and its reports on Form 10-Q and Form 8-K, filed with the SEC and available on the Investor Relations page of the company's Web site at www.FreddieMac.com/investors and the SEC's Web site at www.sec.gov.

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four home borrowers and is one of the largest sources of financing for multifamily housing. Additional information is available at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.