MCLEAN, Va., Feb. 6 / PRNewswire / – Freddie Mac (OTCQB: FMCC) today announced pricing for the Seasoned Credit Risk Transfer Trust (SCRT) first offering of 2021 – an approximately $ 1.2 billion securitization, including of both guaranteed senior and non-guaranteed subordinated securities that are backed by a pool of experienced recurring loans (RPLs). The SCRT securitization program is an integral part of Freddie Mac’s seasoned credit offering, reducing less cash in its portfolio of mortgage-related investments and eliminating credit and market risk through commercially reasonable transactions.
The Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2021-1, includes guaranteed senior certificates of approximately USD 1.1 billion and non-guaranteed mezzanine and subordinated certificates of approximately USD 85 million. The mezzanine certificates are assessed. The transaction is expected to close on April 13, 2021. The underlying collateral consists of 11,123 fixed, tiered, and adjustable, never modified, and modified seasoned RPLs that have been modified to help borrowers at risk of foreclosure keep their homes. In accordance with the criteria of the SCRT program, as of the cut-off date, all mortgage loans, including approximately 0.27% of a forbearance plan, had been executed using the MBA calculation method for at least the last 6 months and were not in default.
The loans are serviced by Specialized Loan Servicing LLC and in accordance with conditions that prioritize borrower retention options in the event of default and promote neighborhood stability.
Citigroup Global Markets Inc. and Wells Fargo Securities, LLC as co-lead managers and joint bookrunners, as well as Amherst Pierpont Securities LLC, BofA Securities, Inc., JP Morgan Securities LLC, StoneX Financial Inc. and Samuel A. Ramirez advised on this transaction & Company, Inc. (a minority owned company) as co-manager.
To date, Freddie Mac has sold over $ 8 billion worth of non-performing loans (NPLs) and securitized over $ 70 billion worth of RPLs, consisting of $ 30 billion in fully guaranteed PCs, $ 30 billion Dollar SCRT senior / sub securitisations and $ 10 billion seasoned loans are available for structured transactions (SLST). For more information on the company’s experienced loan offerings, please visit:
This announcement is not an offer to sell any Freddie Mac securities. Offers for any particular security will only be made through appropriate offering circulars and related amendments to the 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, 2020 contain. 2021; all other reports 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 submitted to 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 Exchange Act, except for any information “made available” 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 for 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 expressed in these and other forward-looking statements. These assumptions, judgments, estimates and factors are discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2020 and in the reports on Form 10-Q and Form 8-K available in Investor Relations Page of the company’s website at www.FreddieMac.com/investors and the SEC website at www.sec.gov. The company assumes no obligation to update any forward-looking statements to reflect events or circumstances that occur after the date of this press release.
The financial and other information in the documents that can be accessed on this page is only valid as of the date of these documents. The information may 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 the home possible for millions of families and individuals by providing mortgage capital to lenders. Since our inception by Congress in 1970, we’ve made housing construction more accessible and affordable for buyers and renters in communities across the country. We’re building a better real estate finance system for buyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.
MEDIA CONTACT: Fred Solomon