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Freddie Mac Variable Liquidity Pricing

Freddie Mac Variable Liquidity Pricing

This variable product offers variable liquidity pricing comprised of a fixed component for five years and a variable component that adjusts every 90 days with extension(s) available with repricing of the fixed component. This is for Targeted Affordable Housing (TAH) retail bond credit enhancement transactions involving immediate funding and funded forwards and Tax-Exempt Bond Securitization (TEBS) transactions.

Variable Liquidity Pricing
Eligible Properties Targeted Affordable Housing (TAH) retail bond credit enhancement transactions involving immediate fundings and funded forwards and Tax-Exempt Bond Securitization (TEBS) transactions
Maximum Liquidity Contract Price No Ceiling
Spread Reset Quarterly
Liquidity Contract Duration 5 years
Credit Enhancement Duration 10 years up to 30 years
Repricing of Fixed Component If there is no event of default, a new fixed component may be proffered by Freddie Mac six months prior to the end of the initial 5-year contract period subject to availability; if available, the new fixed component will be established by Freddie Mac based on the current economic conditions
Underwritten Interest Rate for use in Debt Coverage Ratio Computation

Cap Primary Test: 52-week SIFMA Index + 200 bps stress + fee stack* (not including liquidity fee) + 185 bps for variable liquidity

Cap Secondary Test: cap strike rate + fee stack* (not including liquidity fee) + actual variable liquidity pricing at the time of underwriting (includes fixed component + variable component)

Max LTV 80%
Variable Rate Bonds All variable rate bonds require at least a five-year interest rate cap to hedge the variable interest rate risk
Liquidity Facility Options In the event that the senior Class-A M Certificates bear interest at a variable rate, Freddie Mac may also provide a liquidity facility; several options exist, depending upon Sponsor preference
Hedging If the Class-A M Certificates are variable-rate certificates, the Sponsor must purchase an interest rate hedge from an approved Freddie Mac counterparty

Program Plus Freddie Mac Loans

Program Plus Options
Fixed Rate Loans Floating Rate Loans
Lease-Up Loans Manufactured Housing Community Loans
Revolving Credit Facility Student Housing Loans
Supplemental Loans Value-Add Loans

Affordable Housing Freddie Mac Loans

Affordable Housing Options
9% LIHTC Cash Loans Bond Credit Enhancement with 4% LIHTC
Bond Credit Enhancement with Other Affordability Components Cash Loan with Other Affordability Components
Direct Purchase of Tax-Exempt Mortgages Preservation Rehabilitation Financing
Supplemental Loans Tax-Exempt Bond Securitization (TEBS)
Variable Liquidity Pricing

Other Freddie Mac Loans

Other Freddie Loan Types
Student Housing Loans Small Balance Loans
Freddie Mac Single-Family Rental (SFR) Pilot Program

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