MHProNews has learned from Marketwired that the non-recourse loans use Structured Pass-Through Certificates (“K Certificates”), multifamily mortgage-backed securities. The Government Sponsored Enterprise (GSE) expects to do 1.1 billion in K Certificates (“K-041 Certificates”). They will be priced the week of December 1, 2014. Settlement is expected around December 16, 2014.
In addition Resnick said: “Freddie Mac’s new MHC offering was announced earlier this year and is already bearing fruit. By adding MHCs to our loan products, we are bringing new liquidity and needed competition to the MHC space. Many of these communities are an important source of affordable housing in their markets.”
Among the factors considered in the loan, per Freddie Mac’s website, are:
- The percentage of homes owned by the borrower, borrower-affiliate, or third-party investor cannot exceed 25% in aggregate.
- Homes must conform to the requirements of the federal Manufactured Home Construction and Safety Standards Act of 1974 (HUD Code Standards).
The K-041 Certificates are available via a syndicate led by Wells Fargo Securities, LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated as co-lead managers and joint book runners. Barclays Capital Inc., Guggenheim Securities, LLC, Morgan Stanley & Co. LLC and Stern Brothers & Co. will serve as co-managers. ##
(Logo credit: Freddie Mac)
