Freddie to Enter Commercial Space

Freddie Mac is looking to be a player in the commercial mortgage securitization niche by pooling together multifamily loans and securitizing them through a dealer. Mike May, Freddie Mac's senior vice president, multifamily sourcing, told MortgageWire that the GSE sees the current market disruption as a good opportunity to get into this business. The plan is for Freddie Mac to aggregate the loans, buying them from its network of lenders, and either hold on to or securitize the senior pieces of the loans, while securitizing the "B" pieces through a dealer. If the senior pieces were to be securitized, they would carry the Freddie Mac label.