Over $9 Billion in Credit Risk Transferred for the Year

McLean, VA – Freddie Mac’s Single-Family business today announced that its Credit Risk Transfer (CRT) program transferred $9.1 billion of credit risk on $231 billion of single-family mortgages from U.S. taxpayers to the private sector in 2019. In 2020, Freddie Mac anticipates issuing between $12 and $16 billion in CRT offerings.

“2019 was an incredibly productive year for Single-Family CRT, as we brought 30 deals to market,” said Mike Reynolds, Vice President, Credit Risk Transfer. “2020 will be another ambitious year as we expect it to be our largest issuance calendar yet.”

Through its flagship offerings, Freddie Mac issued approximately $1.8 billion across seven STACR® and ACIS® transactions in the fourth quarter—five on-the-run deals (DNA and HQA) and two seasoned deals (FTR). STACR DNA4 was Freddie Mac’s first REMIC (Real Estate Mortgage Investment Conduit) transaction.

As a result of STACR and ACIS on-the-run transactions this quarter, Freddie Mac transferred between 80 percent (high LTV HQA series) and 92 percent (low LTV DNA series) of the credit risk on the underlying reference pools, helping to reduce capital required under the Conservatorship Capital Framework.

Since the first CRT transaction in 2013, Freddie Mac’s Single-Family CRT program has cumulatively transferred $53 billion in credit risk on $1.4 trillion in mortgages.

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.