Merchants Capital Completes $262M Q-Series Securitization
Mortgage banking company Merchants Capital (MCC), along with Merchants Bank of Indiana (MBI), recently completed a $262-million securitization of 15 workforce multifamily housing loans through a Freddie Mac-sponsored Q-Series transaction.
This transaction with Merchants marks only the 15th deal completed under the Q platform, with Freddie Mac averaging just over two deals per year. MBI will retain the equity and the interest-only securities from the transaction, and MCC will continue to sub-service the loans in the pool.
The $262 million in loans consisted of exclusively workforce properties, owned and operated by some of MCC’s largest clients. On a weighted average basis, the portfolio had 99.5% of units under 80% area median income (AMI), 70.5% of units under 60% AMI and 42.3% of units under 50% AMI.
Although the 15 loans came from across the country, they were concentrated around Indiana and the Midwest, where Merchants has a strong presence.
