Freddie Mac

This type of capital is typically used to place long-term financing on stabilized multifamily-oriented properties that a property owner intends on holding for the long-term. After a Freddie Mac loan is closed, the loan originator contributes it to a pool of other loans that are then bundled together and securitized. Securitization in layman's terms means that the loan pool is figurately chopped up into pieces with varying risk / return profiles. The pieces are effectively converted into bonds and sold to fixed-income investors. Post securitization, the same lender that originated the loan typically services the loan throughout the remaining loan term.