Company will begin electing REMIC treatment on loans placed in PCs
MCLEAN, Va., April 26, 2018 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB:FMCC) today announced that beginning in July 2018, the company will make a Real Estate Mortgage Investment Conduit (REMIC) election on a majority of loans securitized in single-family pools. In May 2017, the company announced it was proposing this structural enhancement to its Structured Agency Credit Risk (STACR®) notes to help expand its potential investor base by increasing the participation of Real Estate Investment Trusts (REITs) and global investors. PCs will continue to be single-class guaranteed mortgage pass-through certificates, and PC investors will receive the same cash flows as they do today.
As part of the proposed change to the STACR structure, Freddie Mac engaged a number of market participants and their feedback has been positive. Earlier this year, the Securities Industry and Financial Markets Association echoed this sentiment, stating that it had “not identified any issues that would impair the TBA eligibility of [mortgage-backed securities] under this new structure.”
Additional information is available on Freddie Mac’s website.
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.
MEDIA CONTACT: Christopher Spina
CRT INVESTOR CONTACT: Mike Reynolds
PC INVESTOR CONTACT: Mark Hanson
Source: Freddie Mac