CMBS Foundations: Freddie Mac MSCR

Research evidence excerpt

CMBS Foundations: Freddie Mac MSCR

Overview

Freddie Mac created its Multifamily Structured Credit Risk (MSCR) program in 2016 in an effort to expand its multifamily credit risk transfer program.

The program was overhauled in 2021 resulting in it being more structurally similar to the Freddie Mac single-family credit risk transfer program, STACR.

Reference obligations for most MSCR deals issued since 2021 have largely been Multi PCs with limited exposure to Freddie K, FRESB, bond credit

enhancements, and portfolio loans. That said, Freddie Mac’s securitization programs outside of Multi PC will likely represent a larger share of MSCR

reference obligations going forward.

Since 2021, 14 core MSCR deals and four non-core MSCR deals (SN and KKR deals) have been issued, totaling more than $100bn of reference obligations,

and we expect this market to continue growing.

Multi PC issuance has increased steadily in recent years, setting a record in 2025 at $28.1bn. Issuance this year has been robust reached 16.6bn YTD

Nearly all Freddie K deals issued last year were structured without a B‑piece, and Freddie Mac plans to continue structuring future K‑deals in this manner.

The lack of B-piece issuance creates a bigger near for Freddie Mac to use the MSCR program to transfer risk from the Freddie Mac program.

Multi PC issuance volumes have steadily increased over

The reference obligations for MSCR deals have been the last few years as Freddie Mac places more emphasis

dominated by Multi PC pools since 2021 on the growth of the program

Share of MSCR deal’s reference obligations by product type and vintage Issuance volumes ($bn) for Multi PCs and MSCR reference obligation volumes by

vintage

Portfolio Loans FRESB Freddie K

Bond Credit Enhancement Freddie Tax Exempt Multi PC