MCLEAN, Va., June 08, 2018 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB:FMCC) today announced that it priced its second Seasoned Credit Risk Transfer Trust (SCRT) offering of 2018 - a rated securitization of approximately $1.6 billion of both guaranteed senior and unguaranteed subordinate securities. The SCRT securitization program is a key part of Freddie Mac's seasoned loan offerings to reduce less liquid assets in its mortgage-related investments portfolio and shed credit and market risk via economically reasonable transactions.
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2018-2 is expected to issue approximately $1.5 billion in guaranteed senior certificates and approximately $127 million in unguaranteed mezzanine and subordinate certificates. The issuance is expected to settle on June 13, 2018. The collateral backing the certificates are 8,628 fixed- and step-rate modified seasoned re-performing loans (“RPLs”). These loans were modified to assist borrowers who were at risk of foreclosure to help them keep their homes and will have been performing for at least 12 months as of the issuance of the certificates.
The loans are serviced by Specialized Loan Servicing LLC. The servicing of the loans will be in accordance with requirements that prioritize borrower retention options in the event of a default and promote neighborhood stability.
Citigroup Global Markets Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated are co-lead managers and joint bookrunners. Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, and Samuel A. Ramirez & Company, Inc. are the co-managers.
To date, Freddie Mac has sold $7 billion of non-performing loans and transacted, $38 billion of RPLs consisting of (i) $27 billion via fully guaranteed PCs, (ii) $10 billion via Seasoned Credit Risk Transfer (“SCRT”) securitizations, and (iii) $1 billion via Seasoned Loan Structured Transaction (“SLST”) offerings. Additional information about the company's seasoned loan offerings can be found at:
http://www.freddiemac.com/seasonedloanofferings/docs/rpl_sales_guidelines_factsheets.pdf.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.
