The borrowing capacity of the facility is determined by the pool of multifamily properties securing it. We expect that the revolving credit facility will provide funds that borrowers can use to rehabilitate and acquire new properties that can cost effectively and quickly move to our fixed-rate programs. The first revolving facility closed recently with Charles E. Smith Residential Realty. Columbia National Real Estate Finance, a Freddie Mac Program Plus lender, brought Freddie Mac the deal and will also service the loans backing the facility. This is the first time Freddie Mac has provided a revolver facility and we appreciate the efforts of both Freddie Mac and Columbia National in developing this new financing option.
Borrowers have several ways to tailor the facility to fit their unique needs.
For example, borrowers can choose the interest-rate term on which their rate is based. This enables borrowers to proactively manage the facility in the way that best suits their business needs. Moreover, the ability to move properties into and out of the pool securing the facility provides investors broad asset and liability capacity. Freddie Mac is a stockholder-owned corporation chartered by Congress in 1970 to create a continuous flow of funds to mortgage lenders. By supplying lenders with the money to make mortgages and packaging the mortgages into marketable securities, Freddie Mac sustains a stable mortgage credit system and reduces the mortgage rates paid by homebuyers.