MCLEAN, VA--(Marketwired - May 23, 2017) - Freddie Mac (OTCQB: FMCC) announces the pricing of the SB31 offering, a multifamily mortgage-backed securitization backed by small balance loans underwritten by Freddie Mac and issued by a third-party trust. The company expects to guarantee approximately $237.5 million in Multifamily SB Certificates (SB31 Certificates), which are anticipated to settle on or about May 30, 2017. Freddie Mac Small Balance Loans generally range from $1 million to $6 million and are backed by properties with five or more units. This is the sixth SB Certificate transaction in 2017.
SB31 Pricing
| Class | Principal/ Notional Amount (mm) | Weighted Average Life (Years) | Spread (bps) | Coupon | Yield | Dollar Price | ||||||
| A-5F | $7.942 | 4.08 | S + 29 | 2.2000% | 2.04633% | $100.4850 | ||||||
| A-5H | $104.336 | 4.02 | S + 40 | 2.3100% | 2.15030% | $100.4950 | ||||||
| A-7F | $7.483 | 5.39 | S + 46 | 2.4600% | 2.34676% | $100.4620 | ||||||
| A-7H | $10.861 | 5.44 | S + 70 | 2.7000% | 2.59035% | $100.4414 | ||||||
| A-10F | $93.466 | 7.29 | S + 72 | 2.8300% | 2.74658% | $100.4536 | ||||||
| A-10H | $13.420 | 7.27 | S + 97 | 3.0800% | 2.99568% | $100.4538 | ||||||
| X1 | $263.898 | 5.60 | Non-Offered | |||||||||
Details
- Sole lead manager and bookrunner: J.P. Morgan Securities LLC
- Co-managers: Duncan-Williams, Inc.; FTN Financial Capital Markets; Stifel, Nicolaus & Company, Incorporated; and Wells Fargo Securities, LLC
- 132 mortgages originated by The Community Preservation Corporation; Capital One Multifamily Finance, LLC; and Pinnacle Bank
- SB31 Certificates Offering Circular pdf
- Small Balance Securitization Investor Presentation pdf
Freddie Mac is guaranteeing six senior principal and interest classes and an interest only class of securities issued by the FRESB 2017-SB31 Mortgage Trust and 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 the Class X2-C1, X2-C2, X2-P1, X2-P2, X2-T1, X2-T2, B, and R Certificates, which will not be guaranteed by Freddie Mac and will be sold to private investors.
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. Freddie Mac has a specialty network of Seller/Servicers and SBL lenders with extensive experience in this market who source loans across the country.
This announcement is not an offer to sell any securities of Freddie Mac or any other issuer. 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 for the year ended December 31, 2016, filed with the Securities and Exchange Commission (SEC) on February 16, 2017; 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, 2016, 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, 2016, 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 makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.
MEDIA CONTACT:
Christopher Spina
703-388-7031
Christopher_Spina@FreddieMac.com
INVESTOR CONTACT:
Robert Koontz
571-382-4082
Aaron Dunn
571-382-5818
The financial and other information contained in the documents that may be accessed on this page speaks only as of the date of those documents. The information could be out of date and no longer accurate. Freddie Mac does not undertake an obligation, and disclaims any duty, to update any of the information in those documents. Freddie Mac's future performance, including financial performance, is subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect the company's future results are discussed more fully in our reports filed with the SEC.