Freddie Mac · OTC:FMCC
Freddie Mac — Investor Presentation (December 2020)
18 slides from Freddie Mac's investor presentation, Dec 31, 2020
Slide 1: Small Balance Loan Program Overview (SB-Deals)
Small Balance Loan Program Overview (SB-Deals®) Investor Presentation as of December 31, 2020 Small Balance Loan Program (SB-Deals) © Freddie Mac Multifamily
Slide 2: Small Balance Loan Program | Key Facts
Small Balance Loan SB-Deals Performance and SB-Deals Securitization Program Overview Investor Resources and Structure Small Balance Loan Program | Key Facts Since 2014, we have securitized 11,319 loans for over $29.9 billion through our SB-Deal® certificates Investor Highlights Focused Expertise and
Slide 3: SBL Program | Mechanics and Features
Small Balance Loan SB-Deals Performance and SB-Deals Securitization Program Overview Investor Resources and Structure SBL Program | Mechanics and Features Freddie Mac Multifamily • We offer 5-, 7- and 10-yr fixed-rate balloon • Competitive, transparent pricing products as well as 20-year hybrid ball
Slide 4: SBL Terms | Prepayment Provisions
Small Balance Loan SB-Deals Performance and SB-Deals Securitization Program Overview Investor Resources and Structure SBL Terms | Prepayment Provisions Prepayment varies by term but offers both step-down or yield maintenance provisions for all products Hybrid ARMs1 Fixed-Rate Option 5+15 Year 7+13 Y
Slide 5: Sourcing Our SBL Business
Small Balance Loan SB-Deals Performance and SB-Deals Securitization Program Overview Investor Resources and Structure Sourcing Our SBL Business Optigo SBL Lenders The dedicated SBL Arbor Agency Lending LLC Production team sources its Basis Investment Group, LLC loans from a select group Berkadia Com
Slide 6: SBL Mortgage Guidelines
Small Balance Loan SB-Deals Performance and SB-Deals Securitization Program Overview Investor Resources and Structure SBL Mortgage Guidelines Property Type • Conventional multifamily housing with five or more residential units • Section 8 vouchers and tax abatements • Properties may include commerci
Slide 7: SBL Market Credit Alignment
Small Balance Loan SB-Deals Performance and SB-Deals Securitization Program Overview Investor Resources and Structure SBL Market Credit Alignment DSCR/LTV Baseline Minimum Amortizing DSCR Maximum LTV Top SBL Markets 1.20x 80% Standard SBL Markets 1.25x 80% Small SBL Markets 1.30x 70% for Refinances
Slide 8: 5-year anniversary report of the SBL Program
Small Balance Loan SB-Deals Performance and SB-Deals Securitization Program Overview Investor Resources and Structure In 2019, we released a report to commemorate the 5-year anniversary of the SBL Program This report provides an overview of loan performance, net operating income growth, delinquency
Slide 9: SB-Deals Performance
Small Balance Loan SB-Deals Performance and SB-Deals Securitization Program Overview Investor Resources and Structure SB-Deals Performance Freddie Mac is an active • As of December 2020, the SB-Deal • 2,049 loans have paid off program has grown to include: through December 2020 and consistent issuer
Slide 10: Loan Performance Resources at your Fingertips
Small Balance Loan SB-Deals Performance and SB-Deals Securitization Program Overview Investor Resources and Structure Loan Performance Resources at your Fingertips Performance data for our SB-Deals is updated monthly at Loan-level performance https://mf.freddiemac.com/investors/data.html can be acce
Slide 11: Stay Up to Date with our Investor Resources
Small Balance Loan SB-Deals Performance and SB-Deals Securitization Program Overview Investor Resources and Structure Stay Up to Date with our Investor Resources SB-Deal Program Handout - https://mf.freddiemac.com/docs/sb-program-handout.pdf SB-Deal X1 Handout - https://mf.freddiemac.com/docs/sbl_x1
Slide 12: Typical SB-Deal Issuance Timeline
Small Balance Loan SB-Deals Performance and SB-Deals Securitization Program Overview Investor Resources and Structure Typical SB-Deal Issuance Timeline Internal Pool Preparation Preliminary Due Diligence Full Due Diligence Marketing / Placement Closing/Settlement Surveillance 4 weeks 2 weeks 5 - 6 w
Slide 13: Structure and Waterfall Overview
Small Balance Loan SB-Deals Performance and SB-Deals Securitization Program Overview Investor Resources and Structure Structure and Waterfall Overview The SB-Deal structure mirrors the typical floating-rate K-Deal pro rata structure¹ with senior Freddie Mac guaranteed A bonds, a single Freddie Mac g
Slide 14: Sample SB-Deal Rate and Coupon Structure
Small Balance Loan SB-Deals Performance and SB-Deals Securitization Program Overview Investor Resources and Structure Sample SB-Deal Rate and Coupon Structure Coupon Net Rate 3.75% Primary, Master, Trustee and CREFC Fees 3.25% Guarantee Fee Guaranteed Classes 2.94% Non-Guaranteed Class A5F, A5H, A7F
Slide 15: Sample SB-Deal B-Piece Coupon Structure
Small Balance Loan SB-Deals Performance and SB-Deals Securitization Program Overview Investor Resources and Structure Sample SB-Deal B-Piece Coupon Structure • Freddie Mac sets the initial fixed-rate Balloon Fixed Remaining Month 1 coupon for each class’ fixed-rate period UPB $ Term, Terms, Fixed (I
Slide 16: SB-Deal Program | Community Reinvestment Act (CRA)
Small Balance Loan SB-Deals Performance and SB-Deals Securitization Program Overview Investor Resources and Structure SB-Deal Program | Community Reinvestment Act (CRA) Since 2017, we have allocated $2.49 billion of SB-Deal investments to investors seeking to meet their CRA needs1 # Of Units Histori
Slide 17: SB-81 | Transaction Highlights
Small Balance Loan SB-Deals Performance and SB-Deals Securitization Program Overview Investor Resources and Structure SB-81 | Transaction Highlights Overview of Deal Structure (Pricing Date: December 9, 2020)1 Structural Diagram Assumed Initial Principal or Pricing Weighted Class Notional Amount Spr
Slide 18: applicable offering circulars and related supplements, which incorporate Freddie Mac’s Annual Report on Form
This product overview is not an offer to sell or a solicitation of an offer to buy any securities of Freddie Mac or any other issues. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac’s Annual Report on Form 10-K