KBRA Publishes Research – Freddie Mac K Series Loan Default and Loss Study



NEW YORK–() – Kroll Bond Rating Agency (KBRA) publishes a study on Freddie Mac’s K-Series Loan Default and Loss. In its report, KBRA analyzed the performance of 17,037 loans across 300 securitized transactions from June 2009 to December 2020. The cumulative default rate for the study group was 0.35% (59 credits). Of the 59 overdue loans, eight suffered losses with a loss severity ranging from 9.6% to 51% (average 28.1%).

The study examined the default rates by property, loan, and financial performance. Among the subtypes of ownership, student housing loans had the highest default rate of 3.53%, while apartment buildings were significantly lower at 0.36% and industrial housing accounted for less than half that rate, at 0. fourteen%. Lower default rates were generally observed for larger loans (with balances over USD 50 million), loans used to purchase real estate, and real estate in primary markets.

Click on here to view the report.

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KBRA is a full service rating agency registered in the US, EU and UK and dedicated to providing structured finance ratings in Canada. KBRA ratings can be used by investors for capital regulation purposes in multiple jurisdictions.


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