McLEAN, VA–Freddie Mac has launched its first single-family rental home securitization as part of its push into this space. This inaugural offering is part of a pilot project, for which the GSE has gotten approval from the FHFA to issue slightly more than $1 billion.
For this transaction, Freddie expects to issue approximately $161 million in SR, or single rental, certificates. They are backed by 59 loans issued primarily by CoreVest American Finance Lender.
This program is largely an affordable play for the GSE, David D. Leopold, vice president of targeted affordable sales & investments at Freddie Mac Multifamily, tells GlobeSt.com. Indeed, of the 2,355 properties included in this transaction, 94% are affordable to families earning less than 100% of area median income and 71% are affordable to low-income families earning less than 80% AMI. More than 12% are affordable to families earning 50% of AMI or less.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
