Freddie Mac on Friday began making adjustable-rate mortgages eligible for securitization into its K certificate multifamily mortgage-backed securities.

This is the latest in a succession of new multifamily products Freddie been adding as eligible for what it calls capital markets execution over the past two years. Other CME-eligible products have included loans for student and senior housing, conventional structured finance pools and loans for targeted affordable housing. K certificates are backed by selected loans purchased through Freddie’s capital markets execution.

In a capital markets execution, Freddie buys mortgages secured by multifamily properties from its lender network. It then typically also pools them, securitizes them through a broker/dealer and offers the securities to the market.

CME loans have represented more than 70% of Freddie’s multifamily funding volume in the last 15 months. In the first five months of this year, Freddie brought to market six K certificate deals with an issuance size of about $1 billion each. It has settled $14 billion in K certificates since its first issuance in 2009.

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