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CRE Finance World, Winter 2013

The Freddie Mac K Program: Quality, Stability, Liquidity Conclusion Appendix: Freddie Mac Program Plus Sellers/Servicers Freddie Mac K certificates combine some of the best features of Figure A-1 a private label CMBS conduit program with those of agency multi- Program Plus Sellers/Servicers family deals. Regular issuance, strong prepayment protection, large deal sizes (typically over $1 billion), diversification with an average of 68 loans per deal, good liquidity and transparency of the un- derlying loans for surveillance, are combined with the general high credit quality associated with GSE multifamily programs. In addi- tion, a choice of both amortizing and interest only class with AAA ratings and a Freddie Mac guarantee, as well as those with lower ratings and no guarantee, have led to strong market reception of this product and the explosive growth in issuance to date. Indeed in 2012 we expect K-certificate issuance “to equal or approach” that of the entire non-agency CMBS conduit market. Source: Freddie Mac 1 The originators have over 150 branches nationwide with substantial ING Investment Management lending experience and established performance records. 2 Freddie Mac has issued 5, 7 and 10 year deals. Real Estate Finance – Atlanta 3 The first two K-deals were not backed by Freddie Mac collateral and so Full Service Real Estate Manager are not listed.  Balance Sheet Origination  CMBS Origination  A/B Structures  Fitch Rated - Commercial Primary Servicer CPS3+ - Commercial Special Servicer CSS3+ Contacts Jason Tessler- Head of Production 770-690-6707 Mike Cale East Coast 770-690-4788 John Foley Midwest 770-690-4805 Dan Siegenthaler West Coast 770-690-4652 INVESTMENT MANAGEMENT WWW.INGINVESTMENT.COM CRE Finance World Winter 2013 38


CRE Finance World, Winter 2013
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