Freddie Mac Credit Protects $586 Billion of Single-Family Mortgages Year-to-Date

Rhea-AI Summary

Freddie Mac announced a year-to-date Credit Risk Transfer (CRT) issuance of $14.5 billion, safeguarding $585.5 billion in single-family mortgages. In Q3 alone, CRT issuance reached $4.6 billion, covering $166.6 billion in mortgage balances. Freddie Mac continues to lead the CRT market, engaging over 130 unique participants. Notably, the largest-ever transaction, ACIS 2021-SAP7, was issued at $1.2 billion. Since 2013, the CRT program has transferred approximately $81 billion in credit risk on $2.5 trillion in mortgages.

Positive

• Year-to-date CRT issuance of $14.5 billion, covering $585.5 billion in mortgages.
• Q3 CRT issuance reached $4.6 billion, providing credit protection on $166.6 billion in mortgages.
• Freddie Mac remains the leading issuer in the CRT market with over 130 participants.
• Largest-ever reinsurance transaction (ACIS 2021-SAP7) issued at $1.2 billion.
• Since 2013, $81 billion of credit risk transferred, enhancing market stability.

Negative

• None.

MCLEAN, Va., Nov. 15, 2021 (GLOBE NEWSWIRE) -- Freddie Mac’s Single-Family business today announced that its Credit Risk Transfer (CRT) program reported year-to-date CRT issuance of $14.5 billion, protecting $585.5 billion in unpaid principal balance of single-family mortgages. In the third quarter, CRT issuance of $4.6 billion provided credit protection on $166.6 billion of single-family mortgages. The issuances included STACR® (Structured Agency Credit Risk), ACIS® (Agency Credit Insurance Structure), subordination and certain lender risk sharing transactions.

“At the end of the third quarter 2021, Freddie Mac maintained its position as the leading programmatic issuer of single-family CRT, and we continued to outpace 2020 with more than 130 unique participants across STACR and ACIS,” said Freddie Mac’s Mike Reynolds, Vice President of Single-Family CRT. “In addition to focusing on programmatic issuances, we launched our first-ever repurchase of STACR notes in the third quarter, demonstrating our commitment to maintaining the cost-effectiveness of the CRT program.”

Through its flagship offerings alone, Freddie Mac issued approximately $13.5 billion across seven STACR and nine ACIS transactions in the first three quarters. Among the notable transactions in the third quarter was ACIS 2021-SAP7. At $1.2 billion, it was Freddie Mac’s largest-ever (re)insurance deal.

Since the first CRT transaction in 2013, Freddie Mac’s Single-Family CRT program has cumulatively transferred approximately $81 billion in credit risk on approximately $2.5 trillion in mortgages through STACR, ACIS, certain senior subordination securitization structures and certain lender risk sharing transactions. As of September 30, 2021, approximately 50 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

FAQ

What is Freddie Mac's CRT issuance year-to-date for 2021?

Freddie Mac reported a year-to-date CRT issuance of $14.5 billion.

How much credit protection did Freddie Mac's CRT program provide in Q3 2021?

In Q3 2021, Freddie Mac's CRT program provided credit protection on $166.6 billion in single-family mortgages.

What was the largest CRT transaction in Freddie Mac's history?

The largest CRT transaction in Freddie Mac's history was ACIS 2021-SAP7, issued at $1.2 billion.

How many unique participants are involved in Freddie Mac's CRT program?

Freddie Mac's CRT program has over 130 unique participants.

What is the cumulative credit risk transferred by Freddie Mac since 2013?

Since 2013, Freddie Mac has cumulatively transferred approximately $81 billion in credit risk.