September 19, 2021

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Mortgage News

Freddie Mac Credit Protects $418.9 Billion of Single-Family

MCLEAN, Va., August 5, 2021 (GLOBE NEWSWIRE) – Freddie Mac‘S The family business announced today that it is Credit Risk Transfer (CRT) The program reported a record $ 9.9 billion CRT spend in the first half of the year, protecting $ 418.9 billion in unpaid mortgage loans. $ 3.5 billion CRT issuance in the second quarter, credit protection of $ 173.6 billion in single family mortgages, and record $ 6.4 billion in first quarter issuance of $ 6.4 billion, credit protection of 245, $ 4 billion in single-family mortgages, up half. The emissions contain STACR®, ACIS®, Subordination and certain lender risk-sharing transactions.

“Our CRT issuance in the first half increased significantly year over year due to the increase in buying and refinancing activity as well as our ability to reduce the time from loan acquisition to ACIS issuance in the first quarter,” said Mike Reynolds of Freddie Mac, Vice President of Single Family CRT. “In our strongest half to date, we completed the largest deals in the history of the STACR and ACIS programs, attracted 111 investors, and continued to raise new capital for the CRT markets.”

Through its flagship offerings alone, Freddie Mac raised around $ 9.1 billion in five STACR and seven ACIS transactions in the first half of the year, surpassing the previous high of $ 5.5 billion in the first half of 2020. Notable deals included STACR 2021-HQA1 and ACIS 2021-SAP1 with record-breaking issues of $ 1.4 billion and $ 1 billion, respectively.

Since the first CRT transaction in 2013, Freddie Mac’s single-family CRT program has accumulated approximately $ 83 billion in mortgage exposures through STACR, ACIS, certain senior subordinate securitization structures, and certain lender risk-sharing transactions $ 2.3 trillion transferred. As of June 30, 2021, 49 percent of the single-family mortgage portfolio was covered by credit enhancement.

Via Freddie Mac Single Family Home Credit Risk Transfer
Freddie Macs Single family CRT Programs transfer US taxpayers’ credit risk to global private capital through securities and (re) insurance policies. We started the GSE single-family CRT market when we launched our first Structured Agency Credit Risk (STACR®) in July 2013. In November 2013 we introduced our agency credit insurance structure® (ACIS®) Program. Today, CRT is the primary vehicle by which Freddie Mac transfers credit risk to private capital. For specific STACR and ACIS transaction data, please visit clarity, our CRT data intelligence portal.

About Freddie Mac
Freddie Mac makes homes for millions of families and individuals by providing mortgage capital to lenders. Since our inception by Congress in 1970, we’ve made housing more accessible and affordable for home buyers and renters in communities across the country. We’re building a better home finance system for home buyers, renters, lenders, investors, and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac, and Freddie Mac’s blog FreddieMac.com/blog.

MEDIA CONTACT: Fred Solomon
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