26.12.2003: Meldung: Freddie Mac and Citibank Agree to Multifamily Mortgage Loan Swap Transaction

Freddie Mac and Citibank Agree to Multifamily Mortgage Loan Swap Transaction
Tuesday December 23, 1:59 pm ET

Transaction Will Contribute Significantly to Freddie Mac"s Ability to Meet Its Affordable Housing Goals

MCLEAN, Va., Dec. 23 / -- Freddie Mac announced today that it has agreed to purchase a portfolio of multifamily mortgages from Citibank, NA, Citibank, FSB and Citibank West, FSB (collectively, Citibank) in exchange for Freddie Mac PCs. The total value of the multifamily mortgages to be exchanged for PCs under this agreement could reach approximately $5 billion.

The transaction will contribute significantly to Freddie Mac"s ability to meet the affordable housing goals set by the Department of Housing and Urban Development. The purchase of this portfolio, which consists primarily of 5- to 50-unit mortgages, is especially significant because affordable housing goal regulations provide special incentives for purchases of mortgages on apartment buildings of this size. For that reason, Freddie Mac is providing a number of contractual incentives to Citibank, including fees totaling approximately $65 million.
The first of the Freddie Mac securities associated with this transaction were issued during December 2003 and the remaining PCs are expected to be issued in the first quarter of 2004.

"Freddie Mac and Citibank share a commitment to financing small multifamily properties, because we recognize that these apartments offer an attractive housing option for millions of Americans," said Adrian Corbiere, senior vice president of Freddie Mac"s multifamily division.
Since the introduction of the Freddie Mac Program Plus network of multifamily loan originators and servicers in 1993, Freddie Mac has provided financing for over 20,000 multifamily properties totaling more than $55 billion. That volume represents nearly two million rental units across the country, a large portion of which are affordable to people whose income levels are at or below area median income -- including newly established households, single-parent households, large family households at lower salaries as well as other renters.

Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to support homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage passthrough securities and debt instruments in the capital markets. Over the years, Freddie Mac has opened the doors for one in six homebuyers. For additional information about Freddie Mac, see the company"s web site: www.freddiemac.com.

Source: Freddie Mac
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