Fitch Ratings has issued a presale report on FREMF 2021-K124 Multifamily Mortgage Pass-Through Certificates and Freddie Mac Structured Pass-Through Certificates, Series K-124.

RATING ACTIONS

ENTITY/DEBT	RATING

Freddie Mac SPC Trust Series K-124

A-1

LT	AAA(EXP)sf 	Expected Rating

A-1

ULT	AAA(EXP)sf 	Expected Rating

A-2

LT	AAA(EXP)sf 	Expected Rating

A-2

ULT	AAA(EXP)sf 	Expected Rating

A-M

LT	NR(EXP)sf 	Expected Rating

A-M

ULT	NR(EXP)sf 	Expected Rating

X1

LT	AAA(EXP)sf 	Expected Rating

X1

ULT	AAA(EXP)sf 	Expected Rating

X3

LT	NR(EXP)sf 	Expected Rating

X3

ULT	NR(EXP)sf 	Expected Rating

XAM

LT	NR(EXP)sf 	Expected Rating

XAM

ULT	NR(EXP)sf 	Expected Rating

FREMF 2021-K124 Mortgage Trust

A-1

LT	AAA(EXP)sf 	Expected Rating

A-1

ULT	AAA(EXP)sf 	Expected Rating

A-2

LT	AAA(EXP)sf 	Expected Rating

A-2

ULT	AAA(EXP)sf 	Expected Rating

A-M

LT	NR(EXP)sf 	Expected Rating

A-M

ULT	NR(EXP)sf 	Expected Rating

D

LT	NR(EXP)sf 	Expected Rating

X1

LT	AAA(EXP)sf 	Expected Rating

X1

ULT	AAA(EXP)sf 	Expected Rating

X2-A

LT	AAA(EXP)sf 	Expected Rating

X2-B

LT	NR(EXP)sf 	Expected Rating

X3

LT	NR(EXP)sf 	Expected Rating

X3

ULT	NR(EXP)sf 	Expected Rating

XAM

LT	NR(EXP)sf 	Expected Rating

XAM

ULT	NR(EXP)sf 	Expected Rating

VIEW ADDITIONAL RATING DETAILS

Fitch expects to rate the transaction and assign Rating Outlooks as follows:

FREMF 2021-K124 Multifamily Mortgage Pass-Through Certificates (FREMF 2021-K124):

$83,166,000b class A-1 'AAAsf'; Outlook Stable;

$885,643,000b class A-2 'AAAsf'; Outlook Stable;

$968,809,000ab class X1 'AAAsf'; Outlook Stable;

$968,809,000ab class X2-A 'AAAsf'; Outlook Stable;

In addition, Fitch has issued expected Unenhanced Ratings, which reflect the underlying creditworthiness absent of the Freddie Mac guarantee as well as Rating Outlooks to FREMF 2021-K124 of 'AAAsf'/Stable for classes A-1, A-2 and X1.

Freddie Mac Structured Pass-Through Certificates, Series K-124 (Freddie Mac SPC K-124):

$83,166,000b class A-1 'AAAsf'; Outlook Stable;

$885,643,000b class A-2 'AAAsf'; Outlook Stable;

$968,809,000ab class X1 'AAAsf'; Outlook Stable;

Fitch has also issued expected Unenhanced Ratings, which reflect the underlying creditworthiness absent the Freddie Mac Guarantee as well as Rating Outlooks to Freddie Mac SPC K-124 of 'AAAsf'/Stable for classes A-1, A-2 and X1.

(a)	Notional amount and IO
(b)	Guaranteed by Freddie Mac.

The FREMF 2021-K124 trust consists of both guaranteed and unguaranteed certificates. The underlying guaranteed certificates consist of the classes A-1, A-2, A-M, X1, XAM and X3. These certificates will be purchased by Freddie Mac to be deposited into the Freddie Mac SPC K-124 trust to back the Freddie Mac SPC K-124 certificates. The expected ratings of classes A-1, A-2 and X1 consider the Freddie Mac Guarantee and the underlying creditworthiness of the collateral. Freddie Mac is rated 'AAA'/'F1+'/Negative.

Fitch does not expect to rate the following classes of FREMF 2021-K124: $142,693,000 class A-M, $142,693,000 IO-class XAM, $90,122,376 class D, $90,122,376 IO-class X3, and $232,815,376 IO-class X2-B. Additionally, Fitch does not expect to rate the following classes of Freddie Mac SPC K-124: $142,693,000 class A-M, $142,693,000 IO-class XAM and $90,122,376 IO-class X3. These expected ratings and Unenhanced Ratings are based on the information provided by the issuer as of Feb. 1, 2021.

TRANSACTION SUMMARY

The certificates represent the beneficial ownership interest in the trust. The trust's primary assets are 58 fixed-rate loans secured by 58 properties with an aggregate principal balance of approximately $1.2 billion as of the cut-off date. Freddie Mac SPC K-124 represents a pass-through interest in the corresponding class of securities issued by FREMF 2021-K124. Each Freddie Mac SPC K-124 security has the same designation as its underlying FREMF 2021-K124 class. All loans were originated specifically for Freddie Mac by approved seller servicers. The certificates follow a sequential-pay structure.

Fitch reviewed a comprehensive sample of the transaction's collateral, including cash flow analysis of 77.9% of the pool and asset summary reviews of 100% of the pool.

Coronavirus: The ongoing containment effort related to the coronavirus pandemic may have an adverse impact on near-term revenues (i.e., bad debt expense) and operating expenses (sanitation costs) for some properties in the pool. Delinquencies may occur in the coming months as forbearance programs are put in place, although the ultimate impact on credit losses will depend heavily on the severity and duration of the negative economic impact of the coronavirus pandemic, and to what degree fiscal interventions by the U.S. federal government can mitigate the impact on consumers.

As of April 7, 2020, Freddie Mac has initiated a programmatic enhancement to address potential performance issues resulting from the pandemic. Subject to some exceptions, newly originated loans will be structured with debt service reserves. The debt service reserves typically span six to nine months for loans backed by traditional multifamily properties and 12-18 months for loans backed by student or senior housing properties.

As described in the loan documents, the reserves will be released once the coronavirus emergency declarations are lifted, full due diligence is confirmed and the property is performing. Freddie Mac will waive this requirement in some instances based on sponsor quality or leverage. For this transaction, 36 loans (or 79.8% of the pool) are structured with debt service reserves. For loans Fitch has identified as having greater risk related to the coronavirus, debt service reserves may be considered an appropriate mitigant and offset added stresses.

KEY RATING DRIVERS

Fitch Leverage Slightly Higher Compared to Recent Transactions: The pool's Fitch-stressed loan-to-value ratio (LTV) of 134.4% is higher than both the 2020 and 2019 Fitch-rated, Freddie Mac 10-year K-series transaction averages of 129.4% and 120.0%, respectively. However, the pool's Fitch stressed debt service coverage ratio (DSCR) of 1.06x is better than both the 2020 and 2019 Fitch-rated, Freddie Mac 10-year K-series transaction averages of 1.02x and 1.01x, respectively.

100% Traditional Multifamily or Manufactured Housing: The pool is secured by 96.2% traditional multifamily properties and 3.8% by manufactured housing communities (MHCs). No loan is secured exclusively by student housing or healthcare properties. The pool's traditional multifamily concentration is above the 2020 and 2019 Fitch-rated, 10-year Freddie Mac averages of 94.8% and 95.6%, respectively. Healthcare properties have a higher probability of default in Fitch's multiborrower model than traditional multifamily property types. Student housing properties are the biggest contributor to overall CMBS multifamily defaults.

Below-Average Pool Amortization: The pool is scheduled to amortize by 7.4% of the initial pool balance prior to maturity, which is below the 2020 and 2019 Fitch-rated, Freddie Mac 10-year averages of 8.4% and 8.0%, respectively. Twenty-four loans (54.0% of pool by balance) are partial-term IO, 27 loans (41.9%) are full-term IO and the remaining seven loans (4.0%) provide for amortization through the term of the related underlying mortgage loan.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to a positive rating action/upgrade:

Fitch did not consider the implementation of positive stresses for this transaction as the rated classes are at the highest rating level and cannot be upgraded further. The presale report includes a detailed explanation of additional stresses and sensitivities on page 10.

Factors that could, individually or collectively, lead to a negative rating action/downgrade:

Declining cash flow decreases property value and capacity to meet its debt service obligations. The list below indicates the model-implied rating sensitivity to changes in one variable, Fitch NCF:

Original Rating: 'AAAsf';

10% NCF decline: 'AA+sf';

20% NCF decline: 'A+sf';

30% NCF decline: 'A-sf'.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Structured Finance transactions have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of seven notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of seven notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.

USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10

Fitch was provided with Form ABS Due Diligence-15E (Form 15E) as prepared by Ernst & Young LLP. The third-party due diligence described in Form 15E focused on a comparison and recomputation of certain characteristics with respect to each of the mortgage loans. Fitch considered this information in its analysis and it did not have an effect on Fitch's analysis or conclusions.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

REPRESENTATIONS, WARRANTIES AND ENFORCEMENT MECHANISMS

A description of the transaction's representations, warranties and enforcement mechanisms (RW&Es) that are disclosed in the offering document and which relate to the underlying asset pool is available by clicking the link to the Appendix. The appendix also contains a comparison of these RW&Es to those Fitch considers typical for the asset class as detailed in the Special Report titled 'Representations, Warranties and Enforcement Mechanisms in Global Structured Finance Transactions'.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg

Additional information is available on www.fitchratings.com

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