Freddie, WaMu Complete $6B MF Loan Swap

Freddie Mac has announced the purchase of a $6 billion portfolio of multifamily mortgages from Washington Mutual Bank FA and Washington Mutual Bank in exchange for Freddie Mac PCs.The portfolio consists chiefly of five- to 50-unit mortgages, which Freddie Mac termed "especially significant because affordable housing goal regulations provide special incentives to encourage Freddie Mac's financing of mortgages on apartment buildings of this size." The government-sponsored enterprise said the transaction includes contractual incentives such as $100 million in fees to WaMu, payable on the issuance of individual Freddie Mac securities during September and October of this year. The GSE can be found online at http://www.freddiemac.com.