Freddie Mac Prices Approximately $1.2 Billion Securitization of Re-Performing Loans
MCLEAN, Va., April 08, 2021 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today announced pricing of the first Seasoned Credit Risk Transfer Trust (SCRT) offering of 2021—a securitization of
approximately $1.2 billion including both guaranteed senior and unguaranteed subordinate securities backed by a pool of seasoned re-performing loans (RPLs). The SCRT securitization program is a
fundamental part of Freddie Mac's seasoned loan offerings which reduce less liquid assets in its mortgage-related investments portfolio and sheds credit and market risk via economically reasonable
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2021-1 includes approximately $1.1 billion in guaranteed senior certificates and approximately $85 million in unguaranteed mezzanine and subordinate certificates. The mezzanine certificates will be rated. The transaction is expected to settle on April 13, 2021. The underlying collateral consists of 11,123 fixed-, step-, and adjustable-rate, never modified and modified seasoned RPLs, which were modified to assist borrowers who were at risk of foreclosure to help them keep their homes. Consistent with SCRT program criteria, as of the cut-off date, all the mortgage loans, including approximately 0.27% on a forbearance plan, have been performing and have not been delinquent for at least the previous 6 months using the MBA method of calculation.
The loans are serviced by Specialized Loan Servicing LLC and will be serviced in accordance with requirements that prioritize borrower retention options in the event of default and promote neighborhood stability.
Advisors to this transaction are Citigroup Global Markets Inc., and Wells Fargo Securities, LLC as co-lead managers and joint bookrunners, and Amherst Pierpont Securities LLC, BofA Securities, Inc., J.P. Morgan Securities LLC, StoneX Financial Inc., and Samuel A. Ramirez & Company, Inc. (a minority-owned business) as the co-managers.
To date, Freddie Mac has sold over $8 billion of Non-Performing Loans (NPLs) and securitized more than $70 billion of RPLs consisting of $30 billion of fully guaranteed PCs, $30 billion of SCRT
senior/sub securitizations, and $10 billion of Seasoned Loans Structured Transaction (SLST) offerings. Additional information about the company's seasoned loan offerings can be found at:
This announcement is not an offer to sell any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission (SEC) on February 11, 2021; all other reports Freddie Mac filed with the SEC pursuant to Section 13(a) of the Securities Exchange Act of 1934 (Exchange Act) since December 31, 2020, excluding any information "furnished" to the SEC on Form 8-K; and all documents that Freddie Mac files with the SEC pursuant to Sections 13(a), 13(c) or 14 of the Exchange Act, excluding any information “furnished” to the SEC on Form 8-K.