Freddie, Citi Agree to MF Mortgage Swap

Freddie Mac has announced an agreement to buy a portfolio of up to $5 billion of multifamily mortgages from Citibank NA, Citibank FSB, and Citibank West FSB in exchange for Freddie Mac PCs.Freddie Mac said the transaction would "contribute significantly" to its 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 five- 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," the government-sponsored enterprise said. "For that reason, Freddie Mac is providing a number of contractual incentives to Citibank, including fees totaling approximately $65 million." Freddie Mac can be found online at http://www.freddiemac.com.