Freddie Mac Prices Approximately $385 Million SLST Securitization

Rhea-AI Summary

Freddie Mac announced the pricing of its first Seasoned Loans Structured Transaction Trust (SLST) offering for 2022, amounting to approximately $385 million. This includes $345 million in guaranteed senior certificates and $40 million in non-guaranteed subordinate certificates, backed by a pool of 2,731 seasoned residential mortgage loans. The loans are primarily performing, with none over 150 days delinquent. The transaction will settle on May 26, 2022. This move aims to bolster liquidity and manage credit risk, furthering Freddie Mac's mission of providing accessible mortgage capital.

Positive

• Pricing of the first SLST offering in 2022 at $385 million demonstrates strong market interest.
• Ensures liquidity management through the reduction of less-liquid assets.
• None of the 2,731 loans are over 150 days delinquent.

Negative

• None.

MCLEAN, Va., May 23, 2022 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) announced today the pricing of the first Seasoned Loans Structured Transaction Trust (SLST) offering of 2022 -- a securitization of approximately $385 million including both guaranteed senior and non-guaranteed subordinate securities backed by a pool of seasoned residential mortgage loans. The SLST program is a fundamental part of Freddie Mac's seasoned loan offerings which reduce less-liquid assets in its mortgage-related investments portfolio and shed credit and market risk via economically reasonable transactions.

Freddie Mac SLST Series 2022-1 includes approximately $345 million in guaranteed senior certificates and approximately $40 million in non-guaranteed subordinate certificates. The right to purchase the subordinate certificates was awarded on May 16 via an auction. The transaction is expected to settle on May 26, 2022.

The underlying collateral backing the certificates consists of 2,731 fixed-, adjustable-, and step-rate seasoned loans, and includes both loans that were modified to assist borrowers at risk of foreclosure and loans that were never modified. As of the Cutoff Date, none of the loans are more than 150 days delinquent.

The loans are currently serviced by Specialized Loan Servicing, LLC (SLS) and NewRez LLC, d/b/a Shellpoint Mortgage Servicing in accordance with requirements that, in the event of default, prioritize borrower retention options in the event of default and promote neighborhood stability.

Advisors to this transaction are BofA Securities, Inc and JPMorgan Chase & Co. as co-lead managers and joint bookrunners, and Citigroup Global Markets Inc., Nomura Securities International, Inc., Oppenheimer & Co., Inc., Wells Fargo Securities, LLC, and R. Seelaus & Co., LLC (a woman-owned business) as the co-managers.

To date, Freddie Mac has sold almost $9.7 billion of non-performing loans and securitized approximately $76 billion of re-performing loans consisting of $30 billion of fully guaranteed PCs, $34 billion of SCRT senior/sub securitizations, and almost $12 billion of Seasoned Loans Structured Transaction offerings. 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 any 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 year ended December 31, 2021, filed with the Securities and Exchange Commission (SEC) on February 10, 2022; all other reports Freddie Mac 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 "furnished" to 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 “furnished” to the SEC on Form 8-K.

Freddie Mac’s 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 company’s future necessarily involve a number of assumptions, judgments and estimates, and various factors could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements. These assumptions, judgments, estimates and factors are discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2021, and its reports on Form 10-Q and Form 8-K, which are available on the Investor Relations page of the company’s Web site at https://www.freddiemac.com/investors and the SEC’s website at www.sec.gov. The company undertakes no obligation to update forward-looking statements it makes to reflect events or circumstances occurring after the date of this press release.

The financial and other information contained in the documents that may be accessed on this page speaks only as of the date of those documents. The information could be out of date and no longer accurate. Freddie Mac undertakes no obligation, and disclaims any duty, to update any of the information in those documents.

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 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 the amount of Freddie Mac's first SLST offering in 2022?

The first SLST offering in 2022 is approximately $385 million.

When is the Freddie Mac SLST transaction expected to settle?

The transaction is expected to settle on May 26, 2022.

What types of loans back the SLST offering by Freddie Mac?

The SLST offering is backed by a pool of 2,731 seasoned residential mortgage loans.

What is the status of the loans backing Freddie Mac's SLST offering?

As of the cutoff date, none of the loans are more than 150 days delinquent.

What financial strategy does the SLST program support for Freddie Mac?

The SLST program supports liquidity management and risk reduction in mortgage-related investments.