MCLEAN, Va., July 21, 2021 (GLOBE NEWSWIRE) – Freddie Mac (OTCQB: FMCC) today announced pricing for the Seasoned Loans Structured Transaction Trust (SLST) second offering in 2021 – a securitization of approximately US $ 772 million – Dollars, including guaranteed senior and unguaranteed subordinated securities backed by a pool of Expert Reperforming Loans (RPLs). The SLST program is a foundational 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 SLST Series 2021-2 comprises approximately $ 687 million in guaranteed senior allowances and approximately $ 85 million in non-guaranteed subordinated allowances. The right to purchase the subordinated certificates was granted on July 19 at an auction. The transaction is expected to close on July 29, 2021.
The collateral underlying the Certificates consists of 5,139 fixed, variable and tiered RPLs, most of which have been previously modified to help borrowers.
The loans are currently being provided by Select Portfolio Servicing, Inc. (“SPS”) and Community Loan Servicing, LLC (“CLS”) conditions which prioritize borrower retention options in the event of default and promote neighborhood stability.
Advisors to this transaction are Wells Fargo Securities, LLC and BofA Securities, Inc. as Co-Lead Managers and Joint Bookrunners as well as Citigroup Global Markets Inc., JP Morgan Securities, LLC, Nomura Securities International, Inc., Oppenheimer & Co., Inc. and R. Seelaus & Co., LLC (a women-run company) as co-managers.
To date, Freddie Mac has sold nearly $ 9 billion in non-performing loans (NPLs) and securitized approximately $ 73 billion in RPLs consisting of $ 30 billion in fully guaranteed PCs, $ 32 billion in senior / subordinate SCRT -Securitizations and nearly $ 11 billion in seasonal loan deals for structured transactions (SLST). For more information on the company’s proven 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 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 reports that 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 discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 and in its reports on Form 10-Q and Form 8-K, available on the Investor Relations page the company 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 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