Freddie Mac Credit Enhances $46 Billion in Single-Family Mortgages in Q2 2019

$1.4 billion in private investment raised through STACR and ACIS credit risk transfer programs

MCLEAN, Va., July 10, 2019 (GLOBE NEWSWIRE) -- Freddie Mac today announced second quarter 2019 results for its Single-Family Credit Risk Transfer (CRT) STACR® and ACIS® offerings. The two flagship CRT programs issued three on-the-run transactions (DNA and HQA) and two seasoned transactions (FTR and HRP), raising $1.4 billion in private investment. As a result, Freddie Mac transferred credit risk away from U.S. taxpayers to the private sector on $46 billion in single-family mortgages acquired by the company.  

As measured by the Conservatorship Capital Framework, combined STACR and ACIS 2019 on-the-run transactions have transferred a portion of credit risk on their underlying reference pools for both low and high LTV series to date: 

  • STACR and ACIS DNA series (60%-80% LTV) deals reduced conservatorship capital required for credit risk by 90%.
  • STACR and ACIS HQA series (80%-97% LTV) deals reduced conservatorship capital required for credit risk by 80%.

“These second quarter results reflect the strong demand for Freddie Mac credit risk offerings,” said Mike Reynolds, Vice President, Credit Risk Transfer. “Freddie Mac remains more invested than ever in providing liquidity, stability and affordability to the housing finance industry while working to decrease risk and to provide unique investment opportunities.”

In second quarter 2019, Freddie Mac also launched the CRT data intelligence portal, CRT Clarity. Clarity is a centralized hub to access transaction and performance data across STACR and ACIS offerings. Experience CRT Clarity at Clarity.FreddieMac.com.

Year to date, Freddie Mac’s single-family CRT programs, as a whole, have raised $5 billion in private investment providing protection on $135 billion in single-family mortgages. Since the first CRT transaction in 2013, Freddie Mac has transferred credit risk on more than $1.3 trillion in mortgages and raised $49 billion in private investment through its single-family CRT offerings.

About Freddie Mac Single-Family Credit Risk Transfer
Freddie Mac’s Single-Family CRT programs transfer credit risk from U.S. taxpayers to private institutional investors via securities and reinsurance policies. Freddie Mac founded the GSE CRT market when it issued the first Structured Agency Credit Risk (STACR®) notes in July 2013. In November 2013, Freddie Mac introduced the first Agency Credit Insurance Structure (ACIS ®) program, offering opportunities for global reinsurance companies to invest in the credit worthiness of the U.S. housing market.

About Freddie Mac
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, investors and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac, and Freddie Mac’s blog FreddieMac.com/blog.

MEDIA CONTACT: Fred Solomon
703-903-3861
Frederick_Solomon@freddiemac.com