MCLEAN, VA--(Marketwired - Jun 7, 2013) - Freddie Mac (OTCQB: FMCC) today received a commercial loan master servicer ranking of Above Average from Standard & Poor's. The high ranking reflects the quality of the Freddie Mac Multifamily operations, technology and staff, and the business's ability to monitor the information provided by its subservicers (Seller/Servicers).
Freddie Mac functions as the master servicer for 8,000 multifamily loans that have not been securitized in K-deal transactions. It oversees the quality of information provided by its 33 servicers to ensure accurate reporting, remittance of funds to trustees to pay security investors, as applicable, and compliance with Freddie Mac requirements.
"This rating demonstrates the operational strength of Freddie Mac's Multifamily servicing capabilities as well as adds credibility to what we do in the marketplace," said Michael Lipson, senior vice president of Multifamily Asset Management and Operations for Freddie Mac. "It's rewarding to know that our investment in people, technology and processes is being recognized by a leading ratings agency."
As stated in the S&P press release, the ranking was based on Freddie Mac's seasoned management team, effective technology, solid audit and compliance controls and comprehensive servicer oversight program.
This is the second rating that Freddie Mac Multifamily has received for its asset management capabilities. In November 2012, Freddie Mac received an initial commercial mortgage-backed securities (CMBS) special servicer rating of "CSS2-" from Fitch Ratings. The rating reflects the ability of the Freddie Mac Multifamily business to work out loans backed by apartment buildings with five or more units and acquired from its Seller/Servicer network.
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four homebuyers and is one of the largest sources of financing for multifamily housing. www.FreddieMac.com. Twitter: @FreddieMac