MCLEAN, Va., June 9, 2021 (GLOBE NEWSWIRE) – Freddie Mac (OTCQB: FMCC) today announced pricing for its second Seasoned Credit Risk Transfer Trust (SCRT) offering of 2021 – a securitization of approximately $ 1.0 billion. USD, including guaranteed senior and non-guaranteed subordinated securities backed by a pool of Expert Reperforming Loans (RPLs). The SCRT securitization program is a fundamental part of Freddie Mac’s proven credit offerings that reduce less liquid assets in his mortgage-related investment portfolio and remove credit and market risk through economically sound transactions.
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2021-2 comprises approximately $ 936 million in guaranteed senior allowances and approximately $ 65 million in unguaranteed mezzanine and subordinated allowances. The mezzanine certificates are assessed. The transaction is expected to close on June 15, 2021. The underlying collateral consists of 8,927 fixed, tiered, and floating rate, never-modified, and modified RPLs that have been modified to help borrowers who have faced foreclosure keep their homes. In accordance with the criteria of the SCRT program, as of the cut-off date, all mortgage loans, including approximately 0.38% on a forbearance plan, were in the past 6 months according to the MBA calculation method and not overdue.
The loans are serviced by Select Portfolio Servicing, Inc. and are administered in accordance with conditions which prioritize borrower retention options in the event of default and promote neighborhood stability.
Advisors to this transaction are JP Morgan Securities LLC and Citigroup Global Markets Inc. as Co-Lead Managers and Joint Bookrunners as well as Amherst Pierpont Securities LLC, BofA Securities, Inc., Nomura Securities International, Inc., StoneX Financial Inc. and R Seelaus & Co ., LLC (a women-owned company) as co-manager.
To date, Freddie Mac has sold over $ 8 billion in non-performing loans (NPLs) and securitized more than $ 72 billion in RPLs consisting of $ 30 billion in fully guaranteed PCs, $ 31 billion in SCRT -Senior / Sub-Securitisations and nearly $ 11 billion in Seasoned Structured Loan Transaction (SLST) offerings. For more information on the company’s proven loan offerings, please visit: http://www.freddiemac.com/seasonedloanofferings/
This announcement is not an offer to sell any Freddie Mac securities. Offers for any particular security will only be made through relevant offering circulars and related supplements containing Freddie Mac’s Annual Report on Form 10-K for the year ended December 31, 2020, which was filed with the Securities and Exchange Commission (SEC) on February 11 . 2021; all other notifications Freddie Mac has filed with the SEC under Section 13 (a) of the Securities Exchange Act of 1934 (Exchange Act) since December 31, 2020, except for any information served on the SEC on Form 8-K “ “Were; and all documents Freddie Mac files with the SEC under Section 13 (a), 13 (c) or 14 of the Securities Exchange Act, except for information “served” to the SEC on Form 8-K.
Freddie Mac’s press releases sometimes contain forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, some of which are beyond the control of the company. Management’s expectations about the future of the company necessarily involve a number of assumptions, judgments and estimates and various factors could cause actual results to differ materially from those anticipated in these and other forward-looking statements. These assumptions, judgments, estimates and factors are recorded in the company’s annual report on Form 10-K for the 31st page of the company’s website www.FreddieMac.com/investors and the SEC website at www.sec.gov. The company undertakes no obligation to update any forward-looking statements to reflect events or circumstances that have occurred after the date of this press release.
The financial and other information contained in the documents accessible on this page is only valid as of the date of these documents. The information could be out of date and no longer correct. Freddie Mac makes no obligation and disclaims any obligation to update the information in these documents.
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 and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.
MEDIA CONTACT: Fred Solomon