Freddie Mac Credit Protected $828 Billion of Single-Family Mortgages in 2021

Rhea-AI Summary

Freddie Mac's Single-Family Credit Risk Transfer (CRT) program achieved a record issuance of nearly $20 billion in 2021, providing credit protection for $828.5 billion in single-family mortgages. In Q4 alone, CRT issuance reached $5.4 billion, safeguarding $242.9 billion in mortgages. Key highlights include the introduction of a 30-year standalone ACIS and a 20-year STACR transaction. Since 2013, the program has cumulatively transferred approximately $85.3 billion in credit risk on $2.7 trillion in mortgages, with 53% of the mortgage portfolio enhanced by credit risk measures.

Positive

• Record CRT issuance of nearly $20 billion in 2021.
• Q4 CRT issuance reached $5.4 billion, providing significant credit protection.
• Introduction of innovative CRT transaction structures, enhancing market offerings.
• Cumulative credit risk transfer of $85.3 billion since 2013.

Negative

• None.

MCLEAN, Va., Feb. 25, 2022 (GLOBE NEWSWIRE) -- Freddie Mac's Single-Family business today announced that its Credit Risk Transfer (CRT) program reported 2021 CRT issuance of nearly $20.0 billion, protecting $828.5 billion in unpaid principal balance of single-family mortgages. In the fourth quarter, CRT issuance of $5.4 billion provided credit protection on $242.9 billion of single-family mortgages. The issuances included STACR® (Structured Agency Credit Risk), ACIS® (Agency Credit Insurance Structure), other insurance issuances, subordination and certain lender risk sharing transactions.

“Freddie Mac’s Single-Family CRT program continued to innovate and evolve in 2021 while achieving record issuance,” said Freddie Mac’s Mike Reynolds, Vice President of Single-Family CRT. “The year saw our first 30-year standalone ACIS transaction and first-ever STACR transaction with a 20-year maturity and a 5-year call option. Our first-ever tender offer for STACR notes in 2021 set the stage for additional opportunities to manage Freddie Mac’s CRT portfolio.”

Through its flagship offerings alone, Freddie Mac issued approximately $18.7 billion across 10 STACR and 11 ACIS transactions in 2021. Among the notable transactions in the fourth quarter was October’s STACR 2021-DNA6. At nearly $1.5 billion, it was at that time Freddie Mac’s largest-ever CRT securities transaction.

Since the first CRT transaction in 2013, Freddie Mac’s Single-Family CRT program has cumulatively transferred approximately $85.3 billion in credit risk on approximately $2.7 trillion in mortgages through STACR and ACIS. As of December 31, 2021, approximately 53 percent of the Single-Family mortgage portfolio was covered by credit enhancement.

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, providing stability, liquidity and affordability to the U.S. housing market. The GSE Single-Family CRT market was founded when Freddie Mac issued the first STACR® (Structured Agency Credit Risk) notes in July 2013. In November 2013, ACIS® (Agency Credit Insurance Structure®) was introduced. Today, the industry-leading and award-winning programs attract institutional investors and (re)insurance companies worldwide. For specific STACR and ACIS transaction data, visit Clarity Data Intelligence^SM.

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