Freddie Mac Hits $1Trillion CRT Milestone with Pricing of Lower LTV STACR

MCLEAN, Va., June 12, 2018 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB:FMCC) today announced the pricing of $1.05 billion Structured Agency Credit Risk (STACR^®) 2018-DNA2 Notes, its second lower LTV deal of the year. This is also the second STACR transaction in which the notes are issued by a trust rather than as Freddie Mac debt. Through STACR, its flagship credit risk transfer offering, Freddie Mac transfers a significant portion of its mortgage credit risk on certain groups of loans to private investors. All told, Freddie Mac has transferred a portion of credit risk on more than $1 trillion in single-family mortgages through its diverse credit-risk transfer (CRT) program.

“We have transferred a significant portion of mortgage credit risk to private investors on more than $1 trillion of single-family mortgages – and we’re very proud of reaching this important milestone in our credit risk transfer program,” said Mike Reynolds, vice president of credit risk transfer. “Our innovation and leadership in CRT is building a better housing finance system for homebuyers and taxpayers, and providing global investors a growing number of opportunities to invest in the U.S. residential housing market.”

Pricing for STACR Series 2018-DNA2 Notes:

• M-1 class was one-month LIBOR plus a spread of 80 basis points.
• M-2 class was one-month LIBOR plus a spread of 215 basis points. 
• B-1 class was one-month LIBOR plus a spread of 370 basis points.

STACR 2018-DNA2 has a reference pool of single-family mortgages with an unpaid principal balance (UPB) of approximately $49.3 billion, consisting of a subset of fixed-rate, single-family mortgages with an original term of 241 to 360 months acquired by Freddie Mac (i) between August 1, 2017, and Nov. 30, 2017; or (ii) between November 1, 2016 and March 31, 2017 and that had been previously excluded from the STACR 2017-DNA3 reference pool due to the location of the related mortgaged property in a county declared by FEMA, at any time from and after September 14, 2017 and through and including November 2, 2017, to be a major disaster area and in which FEMA had authorized individual assistance to homeowners in such county as a result of Hurricane Harvey or Hurricane Irma.