please explain how Freddie Mac trades mutlifamily securities

Expert Solution

Freddie Mac Multifamily is a leading issuer of agency-guaranteed structured multifamily securities. K-Deals are part of the company's business strategy to transfer a portion of the risk of losses away from taxpayers and to private investors who purchase the unguaranteed subordinate bonds. K Certificates typically feature a wide range of investor options with stable cash flows and structured credit enhancement.

Freddie Mac's press releases sometimes contain forward-looking statements. A description of factors that could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements can be found in the company's Annual Report.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide.

jeff jeffy answered 1 year ago

Frannie Mae and Freddie Mac that collapsed in 2008. The failure of Frannie Mae and Freddie...

Frannie Mae and Freddie Mac that collapsed in 2008. The failure of Frannie Mae and Freddie Mac can be attributed to several weaknesses within the internal environment ranging from procedures and system failures to human capacity and ethical issues. Research and provide the following: 1) Identify five areas of risks that the bank failed to mitigate adequately that could have contributed to the crisis at the bank in 2008. 2) Present at least one argument for each risk you identified...

Describe the Second Transmission Mechanism involving the Federal Reserve, Freddie Mac and Fannie Mae and how...

Describe the Second Transmission Mechanism involving the Federal Reserve, Freddie Mac and Fannie Mae and how the U.S. money supply increases through this mechanism?

How do agencies such as Fannie Mae and Freddie Mac allow individual mortgage holders to collectively...

How do agencies such as Fannie Mae and Freddie Mac allow individual mortgage holders to collectively benefit from the agencies’ access to the capital markets? Does this access result in lower mortgage rates than would otherwise be the case? Are consumers able to have greater access to mortgage opportunities? Why or why not?

What was the relationship between Housing and Urban Development (HUD) and Fannie Mae and Freddie Mac?...

What was the relationship between Housing and Urban Development (HUD) and Fannie Mae and Freddie Mac? According to Thomas Sowell, was the housing boom and bust a national phenomenon? What Act in 1977 directed federal financial supervisory agencies to encourage private institutions to meet the credit needs of the communities they served? What act in 1995 eliminated regulatory discretion and established “objective” standards and show that they the required loans to LMI borrowers? After HUD brought legal action against banks...

Define, describe and provide examples of the differences of Fannie Mae, Freddie Mac, and GNMA mortgages...

Define, describe and provide examples of the differences of Fannie Mae, Freddie Mac, and GNMA mortgages their underwriting guidelines and specific secondary market needs and requirements. Provide examples and application of each

Why does the government sponsor agencies like Ginnie Mae, Fannie Mae, and Freddie Mac?

Why did the government bailout Bear Stearns, Fannie Mae, Freddie Mac and AIG but not Lehman?

10. Historically, Fannie Mae and Freddie Mac went to banks and other mortgage originators, firms that...

10. Historically, Fannie Mae and Freddie Mac went to banks and other mortgage originators, firms that loaned money to homebuyers, and buy their mortgages. This allowed the banks and other originators to make still more mortgage loans. Fannie and Freddie and investment banks would combine mortgages and sell them to individuals and businesses in the form of mortgage-backed securities (MBS). In financial investing, there is generally a tradeoff between risk and reward. Greater returns usually come with greater risks. Financial...

True or False question about the 2008 Financial Crisis GSE’s Fannie Mae and Freddie Mac were...

True or False question about the 2008 Financial Crisis GSE’s Fannie Mae and Freddie Mac were placed in a receivership and sold off in pieces. Is This true or false?

The mortgage backed securities issued by Freddie and Fannie are fully backed by the Federal government.

Question