The GSE's new program shares with the rest of the industry the goal of furthering affordable housing development. However, it is proposing to do so via an intriguing twist: it expects it will significantly trim the costs associated with such placements.

"We have wanted to do something like this for a while because we believe it lowers costs," Shaun Smith, senior director, Targeted Affordable Production with Freddie Mac, tells GlobeSt.com. With many 4% LIHTC bond executions, costs can run up depending on the number of players involved, she says.

"Because this is a direct placement with us, instead of the purchase of credit-enhanced bonds," it is less costly and more efficient, Smith says.

Smith says the GSE has calculated it could bring down costs with a transaction by 40%. "From one recent transaction we estimated the savings to be 4 basis points or $400,000."

Freddie Mac Multifamily plans to purchase from its Targeted Affordable Housing lender network these multifamily tax-exempt loans. It hopes to purchase between $200 million to $300 million this year, she says.

Then will follow the second part of this initiative: the GSE plans to aggregate these tax-exempt loans and securitize them though a M-Deal structure. The GSE hopes to launch an M-Deal by year-end, Smith says.

Come back later this afternoon as we provide more details about the new M-series.

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Also check in with us on Monday as we reveal the results of our GlobeSt.com poll on affordable housing