Freddie Mac assesses securitization of approximately $536 million in reproductive loans


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MCLEAN, Va., Sept. 09, 2022 (GLOBE NEWSWIRE) — Freddie Mac (OTCQB: FMCC) today announced pricing for its second Seasoned Credit Risk Transfer Trust (SCRT) offering of 2022, a securitization of approximately $536 million comprised of both senior secured and subordinated unsecured securities backed by a Seasoned Recurring Lending (RPL) pool. The SCRT program is a fundamental part of Freddie Mac’s seasoned lending offerings that reduce less liquid assets in its mortgage-related investment portfolio and eliminate credit and market risk through economically sensible transactions.

Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2022-2 includes approximately $492 million in senior secured certificates and $45 million in mezzanine and subordinated unsecured certificates. Mezzanine certificates will be rated. The transaction is expected to settle on September 14, 2022. The underlying collateral consists of 3,105 seasoned fixed, step-up and adjustable rate RPLs, and includes both loans that have been modified to help borrowers at risk of foreclosure and loans that have never been modified. On the Closing Date, the assets of the Trust will consist of Recurring and Performing Mortgages which, as of the Cut-Off Date, are either outstanding or less than 30 days past due under the MBA method.

From the date of closing, the mortgages will be serviced by Select Portfolio Servicing, Inc. and will be serviced in accordance with requirements which, in the event of default, prioritize borrower retention options and promote neighborhood stability.

Advisors to this transaction are JP Morgan Securities LLC and Wells Fargo Securities LLC, as joint lead managers and joint bookrunners, and BofA Securities, Inc., Citigroup Global Markets Inc., Nomura Securities International, Inc. and Academy Securities Inc. (a company owned by disabled veterans), as co-managers.

To date, Freddie Mac has sold over $9.7 billion in non-performing loans (NPLs) and securitized over $76 billion in RPLs comprising over $30 billion in fully collateralized PCs, $34 billion in senior/sub SCRT titles and $12 billion of seasoned titles. Structured Lending Transaction Securities (SLST). Additional information about the company’s seasoned loan offerings can be found at: http://www.freddiemac.com/seasonedloanofferings/

This announcement is not an offer to sell Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, filed with the Securities and Exchange Commission (SEC) on February 10, 2022; all other reports that Freddie Mac has filed with the SEC pursuant to Section 13(a) of the Securities Exchange Act of 1934 (Exchange Act) since December 31, 2021, excluding any information “provided” at the SEC on Form 8-K; and all documents that Freddie Mac files with the SEC pursuant to Sections 13(a), 13(c) or 14 of the Exchange Act, excluding any information “provided” to the SEC on Form 8- K.

Freddie Mac press releases sometimes contain forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, some of which are beyond the company’s control. Management’s expectations for the future of the company necessarily involve a number of assumptions, judgments and estimates, and a variety of factors could cause actual results to differ materially from the expectations expressed in such forward-looking statements and ‘others. These assumptions, judgments, estimates and factors are discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and its reports on Form 10-Q and Form 8-K, which are available at Investor Relations website. Company website page at www.FreddieMac.com/investors and SEC website at www.sec.gov. The company undertakes no obligation to update any forward-looking statements it makes to reflect events or circumstances that occur after the date of this press release.

The financial and other information contained in the documents accessible on this page speaks only as of the date of these documents. The information may be outdated and no longer accurate. Freddie Mac assumes no obligation and disclaims any obligation to update the information contained in these documents.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our founding by Congress in 1970, we have made housing more accessible and affordable for buyers and renters in communities nationwide. We are building a better housing finance system for buyers, renters, lenders and ratepayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog, FreddieMac.com/blog.

MEDIA CONTACT: Fred Salomon 703-903-3861[email protected]

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Source: Freddie Mac

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