Freddie Mac Multifamily announced the company will soon launch a new product offering, Multifamily Giant Participation Certificates (Multifamily Giant PCs), which are single-class pass-through securities collateralized by existing Freddie Mac Multi PCs® and/or Multifamily Giant PCs.
“The increasing growth in Multifamily PC volume prompted a strong need for the Multifamily Giant PC product as an alternative re-securitization capability,” said Robert Koontz, senior vice president for Multifamily Capital Markets at Freddie Mac. “As a liquidity tool for Multi PCs, our Multifamily Giant PC capability will bring important benefits to investors, dealers and Freddie Mac.”
Multifamily Giant PCs boost execution by consolidating individual Multi PCs and/or Multifamily Giant PCs into a larger security, providing investors with maximum flexibility to select and execute their own pooling and re-securitization strategies. They also enable investors to manage their portfolios more economically and efficiently.
In addition, they will increase opportunities for impact offerings such as Freddie Mac’s mission-driven Social Bonds. Beginning July 1, Freddie Mac initially will offer two types of Multifamily Giant PCs: taxable fixed-rate and tax-exempt.
Freddie Mac Multifamily (OTCQB: FMCC) is the nation’s multifamily housing finance leader. Historically, more than 90% of the eligible rental units we fund are affordable to families with low-to-moderate incomes earning up to 120% of area median income. Freddie Mac securitizes about 90% of the multifamily loans it purchases, thus transferring the majority of the expected credit risk from taxpayers to private investors.
Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home.
