Federal Home Loan Mortgage Corp (OTCMKTS:FMCC) has announced the pricing of its latest multifamily K-Deal, at approximately $1.2 billion. The K certificates carry seven year terms and are expected to settle around November 22, 2016. It should be noted here that the Freddie Mac Multifamily is considered to be the leading issuer of multifamily securities, guaranteed by the agency. Moreover, the certificates are backed by floating rate multifamily mortgages.
K-Deals form an integral part of FMCC’s strategy to transfer part of the risk associated with mortgages, away from taxpayers, but towards private investors. The aforementioned K-F23 certificates are unrated and would comprise of a single interest class and senior principal, as well as an interest-only class and a class for static prepayment premiums. Earlier, the company issued similar K certificates, which were backed by underlying collateral of multifamily mortgages, with seven year terms. It is expected that FMCC would issued approximately $1 billion, through these (K-723) certificates, which would settle around November 16, 2016.
In addition to this, FMCC recently conducted a survey, which revealed that majority of real estate agents refer their clients to only a select group of lenders. The survey also found that references were based on factors such as: ease of doing business, strength of relationships and lender reputation. Quoting numbers from its survey report, Freddie Mac, in a press release, stated that 84% of real estate agents tend to refer their clients to a network of lenders. Out of this, 76% of the agents claim that their clients use the services of the recommended lender, almost every time.
The company conducted the survey at the annual conference, held by the National Association of REALTORS, in Orlando, Florida. The survey also found out that over 80% of the licensed realtors are trusted by their clients. However, 35% of realtors also claimed that they felt challenged by the lack of understanding exhibited by their clients, about home buying.
Federal Home Loan Mortgage Corp (OTCMKTS:FMCC) closed at a share price of $2.89, at the end of the November 16 trading session, 5.86% higher than the day before. The stock had a trade volume of 9.18 million.