Freddie Mac is reportedly looking to expand its multifamily origination program by teaming with mezzanine lenders.
According to a March 3 report from Nasdaq, mezzanine lenders will make loans on multifamily mortgages originated by Freddie Mac that are destined for securitization. The program is designed to help apartment owners refinance properties that are currently overleveraged. The Nasdaq report states that Freddie Mac will originate lower-level senior mortgages and the mezzanine lenders will provide additional leverage up to 85%.
The program may also allow mezzanine lenders to acquire B-pieces from new Freddie Mac commercial mortgage-backed securities deals.
‘There is a market need for this,’ Freddie Mac spokeswoman Patricia Boerger told Nasdaq.