This variable product offers variable liquidity pricing comprised of a fixed component for five years and a variable component that adjusts every 90 days with extension(s) available with repricing of the fixed component. This is for Targeted Affordable Housing (TAH) retail bond credit enhancement transactions involving immediate funding and funded forwards and Tax-Exempt Bond Securitization (TEBS) transactions.
| Variable Liquidity Pricing | |
| Eligible Properties | Targeted Affordable Housing (TAH) retail bond credit enhancement transactions involving immediate fundings and funded forwards and Tax-Exempt Bond Securitization (TEBS) transactions |
| Maximum Liquidity Contract Price | No Ceiling |
| Spread Reset | Quarterly |
| Liquidity Contract Duration | 5 years |
| Credit Enhancement Duration | 10 years up to 30 years |
| Repricing of Fixed Component | If there is no event of default, a new fixed component may be proffered by Freddie Mac six months prior to the end of the initial 5-year contract period subject to availability; if available, the new fixed component will be established by Freddie Mac based on the current economic conditions |
| Underwritten Interest Rate for use in Debt Coverage Ratio Computation |
Cap Primary Test: 52-week SIFMA Index + 200 bps stress + fee stack* (not including liquidity fee) + 185 bps for variable liquidity Cap Secondary Test: cap strike rate + fee stack* (not including liquidity fee) + actual variable liquidity pricing at the time of underwriting (includes fixed component + variable component) |
| Max LTV | 80% |
| Variable Rate Bonds | All variable rate bonds require at least a five-year interest rate cap to hedge the variable interest rate risk |
| Liquidity Facility Options | In the event that the senior Class-A M Certificates bear interest at a variable rate, Freddie Mac may also provide a liquidity facility; several options exist, depending upon Sponsor preference |
| Hedging | If the Class-A M Certificates are variable-rate certificates, the Sponsor must purchase an interest rate hedge from an approved Freddie Mac counterparty |
Program Plus Freddie Mac Loans
| Program Plus Options | |
|---|---|
| Fixed Rate Loans | Floating Rate Loans |
| Lease-Up Loans | Manufactured Housing Community Loans |
| Revolving Credit Facility | Student Housing Loans |
| Supplemental Loans | Value-Add Loans |
Affordable Housing Freddie Mac Loans
Other Freddie Mac Loans
| Other Freddie Loan Types | |
|---|---|
| Student Housing Loans | Small Balance Loans |
| Freddie Mac Single-Family Rental (SFR) Pilot Program | |
