Freddie Mac Credit Protects $418.9 Billion of Single-Family Mortgages in Record First Half

Rhea-AI Summary

Freddie Mac's Single-Family business announced a record first half Credit Risk Transfer (CRT) issuance of $9.9 billion, safeguarding $418.9 billion in unpaid mortgage principal. The second quarter issuance was $3.5 billion, protecting $173.6 billion in single-family mortgages. Highlights include record-setting transactions in STACR and ACIS programs, with notable issuances of $1.4 billion and $1 billion, respectively. Cumulatively, Freddie Mac has transferred approximately $83 billion in credit risk on $2.3 trillion in mortgages since 2013.

Positive

• Record first half CRT issuance of $9.9 billion.
• Second quarter CRT issuance reached $3.5 billion.
• Strong investor interest with 111 participants in CRT markets.
• Notable transactions included STACR 2021-HQA1 and ACIS 2021-SAP1.
• Cumulative CRT program success with $83 billion in credit risk transferred.

Negative

• None.

MCLEAN, Va., Aug. 05, 2021 (GLOBE NEWSWIRE) -- Freddie Mac’s Single-Family business today announced that its Credit Risk Transfer (CRT) program reported record first half CRT issuance of $9.9 billion, protecting $418.9 billion unpaid principal balance of mortgages. Second quarter CRT issuance of $3.5 billion, credit protecting $173.6 of single-family mortgages and record first quarter issuance of $6.4 billion, credit protecting $245.4 billion of single-family mortgages boosted the half. The issuances included STACR^®, ACIS^®, subordination and certain lender risk sharing transactions.

“Our first half CRT issuance increased notably year-over-year due to the swell of purchase and refinance activity, as well as our ability to shorten the time from loan acquisition to ACIS issuance, in the first quarter,” said Freddie Mac’s Mike Reynolds, Vice President of Single-Family CRT. “In our strongest half to date, we completed the largest transactions in the history of the STACR and ACIS programs, drew 111 investors and continued to attract new capital to the CRT markets.”

Through its flagship offerings alone, Freddie Mac issued approximately $9.1 billion across five STACR and seven ACIS transactions in the first half, which exceeded the previous first half high of $5.5 billion in the first half of 2020. Among the notable transactions were STACR 2021-HQA1 and ACIS 2021-SAP1, with record-setting issuances of $1.4 billion and $1 billion, respectively.

Since the first CRT transaction in 2013, Freddie Mac’s Single-Family CRT program has cumulatively transferred approximately $83 billion in credit risk on approximately $2.3 trillion in mortgages through STACR, ACIS, certain senior subordination securitization structures and certain lender risk sharing transactions. As of June 30, 2021, 49 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. 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 means through which Freddie Mac transfers credit risk exposure to private capital. 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

FAQ

What was the total CRT issuance reported by Freddie Mac in the first half of 2021?

Freddie Mac reported a total CRT issuance of $9.9 billion in the first half of 2021.

How much unpaid principal balance of mortgages is protected by Freddie Mac's CRT program?

The CRT program protects $418.9 billion in unpaid principal balance of mortgages.

What were the notable CRT transactions in the second quarter of 2021?

Notable transactions included STACR 2021-HQA1 with an issuance of $1.4 billion and ACIS 2021-SAP1 with $1 billion.

How has Freddie Mac's CRT program performed since its inception?

Since 2013, Freddie Mac's CRT program has cumulatively transferred approximately $83 billion in credit risk on about $2.3 trillion in mortgages.

What percentage of Freddie Mac's Single-Family mortgage portfolio is covered by credit enhancement?

As of June 30, 2021, 49 percent of the Single-Family mortgage portfolio was covered by credit enhancement.