McLEAN, Va., Oct. 23, 2018 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today released its 2019 issuance calendar for its Structured Agency Credit Risk (STACR®) program. The company expects to offer eight on-the-run STACR transactions next year from its DNA and HQA series, with expected volumes reaching approximately $5 billion-$7 billion—providing credit protection on reference pool collateral acquired by Freddie Mac from April 2018 through March 2019.
Freddie Mac does not plan to offer on-the-run STACR Securitized Participation Interests (STACR SPISM) transactions in 2019 given the recent enhancements to the STACR program, which include similar transaction terms such as extended collateral maturity term to 30 years, new credit enhanced tranches and expected STACR REMIC issuance beginning in early 2019.
Based upon market demand, Freddie Mac may issue off-the-run STACR transactions that would obtain credit protection on reference pool collateral acquired by Freddie Mac prior to April 2018.
“STACR continues to set the standard for the credit risk transfer (CRT) markets, and Freddie Mac plans to offer investors consistent issuances of our flagship CRT product throughout 2019,” said Mike Reynolds, vice president of credit risk transfer. “We are even more deeply committed to CRT in the coming year, which is building a better housing finance system for the nation.”
Freddie Mac has led the market in introducing new credit risk transfer offerings. Since 2013, the company has transferred a significant portion of credit risk on approximately $1.1 trillion of UPB on single-family mortgages. The company has grown its investor base to more than 220 unique investors.
This announcement is not an offer to sell any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements.
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: Frederick Solomon
INVESTOR CONTACT: Mike Reynolds