Freddie Mac announced last week a new lending platform for apartment owners looking to refinance their debt. Working with experienced players in the industry, McLean, VA-based company will help provide mezzanine financing on certain multifamily first mortgages it buys. The move will greatly benefit apartment owners with good credit who are underwater on their mortgages and cannot obtain refinancing at the same leverage levels as a few years ago.The intent, stated Freddie Mac Multifamily SVP Mike May, is to reduce the number of properties that may go into default or foreclosure, or go through a drawn-out workout process. Here's how it works: Freddie would originate a first mortgage with a fixed rate and an LTV of up to 75%, with the mezz lender providing another 15% maximum at either or fixed or floating rate. Freddie would then buy the eligible senior loans from the seller/servicers and either keep them on their books or securitize them. The mezz debt won't be backed by the property, but rather, the borrower's equity-reducing the risk to Freddie. The mezz lender can also bid on the b-piece of the securitized first mortgage.Will this new program have its intended effect? I think so. After all, Freddie Mac and its larger cousin, Fannie Mae, have become the go-to-and, in some cases, the only-sources for apartment financing these days. With so few players operating in the financing arena, let alone experienced, reliable ones, why not go to the source you're comfortable with? I'm pretty certain we'll be seeing a slew of Freddie Mac refinancings over the next several quarters.But the move does bring up some thoughts. For instance, does this somewhat increase the risk Freddie is taking on, especially given the uncertainty and stagnation in the market? What about the terms-will they be competitive, or should borrowers expect to see more cautious figures on this mezz debt? Will this just prolong the downturn by dragging down the inevitable write-downs property owners must take? And how does it impact the dynamics of the property markets, since similar product isn't available for asset classes outside of multifamily?