OREANDA-NEWS. June 23, 2015. Fitch Ratings has affirmed six classes of FREMF 2014-K38 multifamily mortgage pass-through certificates and three classes of Freddie Mac structured pass-through certificates series K-038. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmations of Freddie Mac 2014-K38 are based on the stable performance of the underlying collateral. As of the May 2015 distribution date, the pool's aggregate principal balance has been reduced by 0.6% to \\$1.23 billion from \\$1.24 billion at issuance. Fitch has designated one Fitch Loan of Concern (0.6%). No loans have been in special servicing since issuance and none are defeased.

The affirmations of the Freddie Mac Series K-038 certificates are the result of the pass-through nature of the certificates, as they are dependent on the underlying ratings of corresponding classes of FREMF 2014-K38.

The largest loan (6.2% of the pool) is secured by a 780-unit garden and townhouse style apartment community located in Gahanna, OH in the northeastern portion of Columbus, OH. It is comprised of 70 two- and three-story apartment buildings that were constructed in four phases from 2005 - 2013. As of year-end (YE) 2014, the servicer reported occupancy and Debt Service Coverage Ratio (DSCR) were 92.0% and 1.75x, respectively.

The second largest loan (4.8% of the pool) is secured by 578-unit high rise apartment complex located in the Upper East Side of Manhattan, NY. Approximately 60% of the tenant base is currently under the Mitchell-Lama Section 8 Voucher Program. As of twelve months ended Sept. 30, 2014, the servicer reported occupancy and DSCR were 93.6% and 2.10x, respectively.

RATING SENSITIVITIES

The Rating Outlook for all classes remains Stable. Due to the recent issuance of the transaction and stable performance, Fitch does not foresee positive or negative ratings migration until a material economic or asset-level event changes the transaction's portfolio-level metrics. Additional information on rating sensitivity is available in the report 'FREMF 2014-K38 Multifamily Mortgage Pass-Through Certificates and Freddie Mac Structured Pass-Through Certificates, Series 2014 K-038' (June 11, 2014), available at www.fitchratings.com.

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation to this rating action.

Fitch has affirmed the following classes:

FREMF 2014-K38 Multifamily Mortgage Pass-Through Certificates
--\\$162,064,771 class A-1 at 'AAAsf'; Outlook Stable;
--\\$887,556,000 class A-2 at 'AAAsf'; Outlook Stable;
--\\$1,049,620,771* class X1 at 'AAAsf'; Outlook Stable;
--\\$58,925,000 class B at 'Asf'; Outlook Stable;
--\\$31,013,000 class C at 'BBB+sf'; Outlook Stable.

Freddie Mac Structured Pass-Through Certificates Series K-038
--\\$162,064,771 class A-1 at 'AAAsf'; Outlook Stable;
--\\$887,556,000 class A-2 at 'AAAsf'; Outlook Stable;
--\\$1,049,620,771* class X1 at 'AAAsf'; Outlook Stable.

*Notional amount and interest-only.

Of FREMF 2014-K38, Fitch does not rate the \\$183.0 million interest-only class X3 or the \\$93.0 million class D. Of the Freddie Mac Structured Pass-Through Certificates, Series K-038, Fitch does not rate the \\$183.0 million interest-only class X3.