Freddie Mac Single-Family CRT Hits $50 Billion of Credit Risk Transferred

$50 billion mark demonstrates commitment to risk management and innovative CRT offerings

MCLEAN, Va., Sept. 17, 2019 (GLOBE NEWSWIRE) -- Freddie Mac today announced that its Single-Family Credit Risk Transfer (CRT) programs have surpassed the $50 billion mark in transferring credit risk to private investors and (re)insurers. The milestone demonstrates Freddie Mac’s commitment to risk reduction on behalf of the firm and U.S. taxpayers and to evolving its product offerings to appeal to a wide variety of market participants.

From program inception to date, the company has transferred a portion of the credit risk on more than $1.3 trillion of Single-Family mortgages based on unpaid principle balance (UPB) at issuance. 

Recent enhancements to the programs have proven pivotal in reaching $50 billion. Per Federal Housing Finance Agency (FHFA) guidelines, Freddie Mac now transfers the credit risk on more than 90% of the UPB on CRT-eligible, newly-acquired Single-Family mortgages. In addition, the market’s ongoing appetite for U.S. residential credit risk has enabled Freddie Mac to transfer credit risk on previously retained exposure, such as seasoned first-loss notes and Home Affordable Refinance Program (HARP) loans.

“I am proud of our accomplishments and the positive impact we are making on the U.S. housing finance industry,” said Mike Reynolds, Vice President, Single-Family Credit Risk Transfer. “Freddie Mac will continue to lead the industry with innovation in the CRT space and set the standard for credit risk management.”

Freddie Mac led a fundamental redesign of the U.S. housing finance industry by introducing the first Government Sponsored Enterprise (GSE) Single-Family CRT programs. CRT reduces Freddie Mac’s capital requirements and credit risk exposure, enhancing the firm’s resilience against possible future economic downturns.  

About Freddie Mac Single-Family Credit Risk Transfer
Freddie Mac’s Single-Family CRT programs transfer credit risk away from U.S. taxpayers to global private capital via securities and (re)insurance policies. We founded the GSE Single Family CRT market when we issued our first Structured Agency Credit Risk (STACR®) notes in July 2013. In November 2013, we introduced our Agency Credit Insurance Structure (ACIS ®) program. Today, CRT serves as the primary source of private capital investment in residential mortgage credit.  For specific STACR and ACIS transaction data, please visit Clarity, our CRT data intelligence portal.

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