Freddie Mac-No Politics (FMCC)

[El Mago]

Freddie funds $548 mln multifamily housing deal




NEW YORK, Sept 17 (Reuters) - Freddie Mac, the second-largest provider of
funding for U.S. mortgages, on Wednesday said it securitized $548 million in
multifamily housing debt as it continues to fill a void left by the global
credit crunch.
Collateral for the the "tax-exempt bond securitization," or TEBS, is
primarily tax-exempt and taxable multifamily housing revenue bonds, Freddie Mac
said in a statement.
The deal is Freddie Mac's second-largest TEBS transaction, and was
completed with Citigroup Inc unit Municipal Mortgage Holdings Inc.
Its completion may help ease concerns that the recent U.S. government
takeover of Freddie Mac and Fannie Mae would force the companies to pull back
from commercial markets where they have been crucial players during the credit
crunch.
"When it comes to running our business, we are not missing a beat," Mike
May, Freddie Mac's senior vice president for multifamily housing, said in the
statement.
Vacancy rates on major sectors of commercial real estate -- including
multifamily -- are expected to rise next year as the economy slows and a lack of
credit curtails activity, the National Association of Realtors said on
Wednesday.
Freddie Mac and Fannie Mae have boosted securitizations and loans for
multifamily housing financing since 2007 as investor aversion to risky
securities froze Wall Street commercial mortgage-backed securities programs.
The federal regulator of Freddie Mac and Fannie Mae on Sept. 7 placed the
companies under conservatorship to ensure they have enough capital to keep money
flowing to the U.S. housing market.
The companies will be allowed to expand their investments by more than
$140 billion through the end of 2009, but then must sharply cut back on the
portfolios, according to the agreement.
A call to a Freddie Mac spokeswoman was not immediately returned.
(Reporting by Al Yoon; editing by Gary Crosse) Keywords: FREDDIEMAC
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