Freddie Mac Announces Fourth Multifamily Securities Offering of the Year, K-SMC

MCLEAN, VA – March 13, 2013 – (RealEstateRama) — Freddie Mac (OTCQB: FMCC) today announced a new offering of Structured Pass-Through Certificates (“K Certificates“), which are multifamily mortgage-backed securities. The company expects to offer approximately $1.35 billion in K Certificates (“K-SMC Certificates”), which are backed by properties owned by Southern Management Corporation affiliates. The K-SMC Certificates are expected to price on or about March 15, 2013, and settle on or about March 28, 2013. This is Freddie Mac’s fourth K Certificate offering this year, and its third single sponsor securitization since 2010.

The K-SMC Certificates are backed by 69 recently-originated multifamily mortgages and are guaranteed by Freddie Mac. The K–SMC Certificates will be offered to the market by a syndicate of dealers led by Morgan Stanley & Co. LLC and Jefferies LLC as co-lead managers and joint bookrunners. J.P. Morgan Securities LLC, Mischler Financial Group, Inc., RBS Securities Inc., and Wells Fargo Securities, LLC will serve as co-managers.

The K-SMC Certificates will not be rated, and include two senior principal and interest classes, as well as one senior interest only class.

“We are very excited to announce our first single sponsor transaction of the year,” said Mitchell Resnick, vice president of Freddie Mac Multifamily Loan Pricing and Securitization. “This deal further illustrates Freddie Mac’s commitment to providing financing for multifamily properties. We continue to follow our business model in which we are focused on selling the riskiest piece of each transaction to investors, thereby attracting private capital into the market.”

This is Freddie Mac’s third securities offering with collateral from a single sponsor. Freddie Mac purchased the Southern Management Corporation loan portfolio in December 2012 from Berkadia Commercial Mortgage LLC. It is one of the largest loan purchases by Freddie Mac Multifamily for its securitization program.

Freddie Mac’s first single sponsor K Certificate transaction was the March 2010 K-SCT securitization backed by the Starrett City property in Brooklyn, N.Y. The second was K-AIV in June 2011 backed by properties from Apartment Investment & Management Company affiliates.

The portfolio is made up of individual loans ranging from $2.5 million to $135 million. The properties are located throughout northern Virginia and Maryland.

Freddie Mac is a leading issuer of agency-guaranteed structured multifamily securities. K Certificates feature a wide range of investor options with stable cash flows and a structured credit enhancement. K-Deals include guaranteed senior principal and interest, and interest only classes.

The preliminary offering circular supplement relating to the K-SMC Certificates can be found at http://www.freddiemac.com/mbs/data/ksmcoc.pdf [PDF]. A Freddie Mac multifamily investor presentation on the K Certificate deal structure and multifamily loan portfolio performance data is available at FreddieMac.com. Freddie Mac also has an online tool for investors and analysts, Multifamily Securities Investor Access. This is a central database that houses all post-securitization data from Investor Reporting Packages to help investors and analysts monitor K-Deal performance.

This announcement is not an offer to sell any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac’s Annual Report on Form 10-K for the year ended December 31, 2012, filed with the Securities and Exchange Commission (“SEC”) on February 28, 2013; all other reports Freddie Mac filed with the SEC pursuant to Section 13(a) of the Securities Exchange Act of 1934 (‘Exchange Act”) since December 31, 2012, excluding any information “furnished” to the SEC on Form 8-K; and all documents that Freddie Mac files with the SEC pursuant to Sections 13(a), 13(c) or 14 of the Exchange Act, excluding any information “furnished” to the SEC on Form 8-K.

Freddie Mac’s press releases sometimes contain forward-looking statements. A description of factors that could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements can be found in the company’s Annual Report on Form 10-K for the year ended December 31, 2012, and its reports on Form 10-Q and Form 8-K, filed with the SEC and available on the Investor Relations page of the company’s Web site at www.FreddieMac.com/investors and the SEC’s Web site at www.sec.gov.

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four homebuyers and is one of the largest sources of financing for multifamily housing. www.FreddieMac.com. Twitter: @FreddieMac

MEDIA CONTACT:
Patti Boerger
703-903-2445

INVESTOR CONTACT:
Mitchell Resnick
571-382-4600