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CRE Finance World, Winter 2013

The Freddie Mac K Program: Quality, Stability, Liquidity CMBS Conduit-Like Transparency and Deal Surveillance Master and Special Servicing Investors also appreciate the transparency in the Freddie Mac K Servicing works in a similar fashion as with a regular non-agency program which is similar to that of a non-agency CMBS conduit CMBS conduit deal. A master servicer collects the principal and deal. Loan and property level information can be tracked and interest payments from borrowers and passes them on to investors monitored via Freddie Mac’s online Multifamily Securities Investor (see Figure 13 below for a list of master servicers). Wells Fargo Access website. This online tool was launched in January of this and KeyCorp Real Estate Capital account for nearly 70% of all year and provides investors with information related to Freddie Freddie Mac K program master servicing. Mac’s K-Deal mortgage-backed securities. This central database includes key post-securitization information from the Investor Figure 13 Reporting Packages provided on a monthly basis by the master Master Servicer Market Share of Subordinate servicer and trustee for a given security issuance. The Multifamily Securities Investor Access tool is a good, easily available online source of information for investors. Users of the tool can perform credit analysis and monitor the performance of these investments utilizing the following features of the website: •Access K-Deal documents such as offering circular supplements Source: RBS, Commercial Mortgage Alert and related exhibits In addition, a special servicer, as with a private label non agency CMBS conduit, works out any loans that have been transferred to it •Download and analyze deal and loan level data for credit or other reasons (see Figure 14 below). If a loan is trans- ferred to a special servicer, the master servicer advances only the •View and download standard reports interest payments to investors. Scheduled principal payments are not paid until the loans are liquidated. Wells Fargo and KeyCorp • Create custom reports again account for the bulk of special servicing or about two thirds of the market. The tool is free to anyone who completes a simple online registration form that includes name, phone number, email address and company Figure 14 name. The online tool provides the investor with more readily available Special Servicer Market Share information on K deals. Previously, investors and analysts could only find this information on fee-based subscription services or directly from the trustees and master servicers. For access to the website go to: http://www.freddiemac.com/multifamily/investors/ reporting.html. Freddie Mac also provides historical information on its Multifamily whole loan portfolio starting in 1994. It includes information on original loan terms; identifiers for prepaid loans, defaulted loans and delinquencies; property information, and dates of real estate Source: RBS, Commercial Mortgage Alert owned (REO) sales. A publication of Winter issue 2013 sponsored by CRE Finance World Winter 2013 37


CRE Finance World, Winter 2013
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