Bloomberg News

Freddie Mac Eyeing Risk-Sharing in Home-Loan Bonds, CEO Says

October 11, 2011

Oct. 11 (Bloomberg) -- Freddie Mac may start using a type of securitization that it issues in its apartment-lending operations to off-load some of the credit risk on home loans, Chief Executive Officer Charles E. Haldeman said.

The government-supported mortgage-finance company’s so- called K series multifamily bonds, in which it guarantees only a senior-ranked class of the debt, have been “wonderfully well- received by the marketplace,” Haldeman said today at the Mortgage Bankers Association’s annual conference in Chicago.

The company has issued more than $9 billion of the securities in the past two years, according to data compiled by Bloomberg. McLean, Virginia-based Freddie Mac is discussing the idea of conducting similar deals tied to home loans with its regulator, the Federal Housing Finance Agency, Haldeman said.

“Our hope is that through working with FHFA we can take some of what we’ve learned in the multifamily business and apply it to the single family business,” he said. “We’re still in the talking phase,” he added.

--With assistance from Lorraine Woellert in Washington. Editors: Pierre Paulden, John Parry

To contact the reporter on this story: Jody Shenn in New York at

To contact the editor responsible for this story: Alan Goldstein at

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