Freddie Mac said Monday it expects its upcoming second offering of its multifamily structured pass-through “K” certificates backed only by seven-year multifamily mortgages to be a bit bigger than its first, and separately noted an executive personnel change in its multifamily area.

Freddie said it expects to offer about $1 billion in “K-702 certificates” this week for settlement on or about June 29.

“It is bigger than 701, which was the first of its kind [and] a little bit of testing the waters,” David Brickman, senior vice president for multifamily capital markets at Freddie Mac, said. “We made it larger just to keep it consistent with our other [core 10-year] K deals which are generally around $1.2 billion, on average, in terms of collateral which gives us about $1 billion in actual Freddie Mac guaranteed K certificates.” (Unguaranteed, subordinate certificates Freddie issues off its K deals account for the difference between the collateral and guaranteed securities.)

Freddie is now committed to keeping the 700 series going, Brickman said.

“We look forward to continuing to have robust seven-year issuance given that we’ve seen very healthy mortgage purchases for seven year mortgages,” he said.

In other news, Freddie also said that it has appointed Mike Lipson as senior vice president, multifamily asset management. Lipson initially will report to Freddie’s head of multifamily Mike May until May’s planned retirement July 15, a spokeswoman said. Thereafter, Lipson is slated to report to Brickman as head of multifamily at Freddie.

The K-702 certificates are backed by 72 recently originated multifamily mortgages and are guaranteed by Freddie Mac.

A syndicate of dealers led by J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC as co-lead managers and joint bookrunners for the transaction are slated to offer the securities.

Bank of America Merrill Lynch, Barclays Capital Inc., Credit Suisse Securities (USA) LLC, and Jefferies & Company Inc. are co-managers.

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