Freddie Mac Launches Multifamily Giant PCs
Freddie Mac Multifamily, a key player in multifamily housing finance, is set to launch Multifamily Giant Participation Certificates (Multifamily Giant PCs) on July 1, 2024. These single-class pass-through securities will be collateralized by existing Multi PCs and/or Multifamily Giant PCs. The new product aims to enhance liquidity, efficiency, and flexibility for investors by consolidating smaller certificates into larger, more manageable securities. Two types will be offered initially: taxable fixed-rate and tax-exempt Giant PCs. This product also supports Freddie Mac's mission-driven Social Bonds, promoting affordable housing for low-to-moderate-income families.
- Launch of Multifamily Giant PCs enhances liquidity and efficiency for investors.
- Two types of Multifamily Giant PCs available: taxable fixed-rate and tax-exempt.
- Supports Freddie Mac’s Social Bonds, boosting affordable housing initiatives.
- Consolidation of smaller certificates into larger ones provides more flexibility and economic management for investors.
- No direct negative aspects were noted in the press release.
New Product Offers Increased Liquidity, Efficiency and Flexibility
MCLEAN, Va., June 27, 2024 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) Multifamily today announced the company will soon launch a new product offering, Multifamily Giant Participation Certificates (Multifamily Giant PCs), which are single-class pass-through securities collateralized by existing Freddie Mac Multi PCs® and/or Multifamily Giant PCs.
“The increasing growth in Multifamily PC volume prompted a strong need for the Multifamily Giant PC product as an alternative re-securitization capability,” said Robert Koontz, senior vice president for Multifamily Capital Markets at Freddie Mac. “As a liquidity tool for Multi PCs, our Multifamily Giant PC capability will bring important benefits to investors, dealers and Freddie Mac.”
Multifamily Giant PCs boost execution by consolidating individual Multi PCs and/or Multifamily Giant PCs into a larger security, providing investors with maximum flexibility to select and execute their own pooling and re-securitization strategies. Multifamily Giant PCs also enable investors to manage their portfolios more economically and efficiently.
In addition, Multifamily Giant PCs will increase opportunities for impact offerings such as Freddie Mac’s mission-driven Social Bonds. Beginning July 1, Freddie Mac initially will offer two types of Multifamily Giant PCs: taxable fixed-rate and tax-exempt Giant PCs.
Freddie Mac Multifamily is the nation's multifamily housing finance leader. Historically, more than
Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More:
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MEDIA CONTACT: Melissa Silverman
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