MCLEAN, VA -- (Marketwired) -- 08/11/17 -- Freddie Mac (OTCQB: FMCC) today announced the settlement of its third Seasoned Credit Risk Transfer (SCRT) offering -- a rated securitization of approximately $2.47 billion of both guaranteed senior and unguaranteed subordinate securities. The SCRT securitization program is a key part of Freddie Mac's seasoned loan offerings to reduce less liquid assets in its mortgage-related investments portfolio and shed credit and market risk via economically reasonable transactions.
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-2 issued approximately $2 billion in guaranteed senior certificates and approximately $421 million in unguaranteed mezzanine and subordinate certificates. The collateral backing the certificates are 9,939 fixed- and step-rate modified seasoned loans. These loans were modified to assist borrowers who were at risk of foreclosure to help them keep their homes and have all been performing for at least 12 months as of issuance.
The loans are serviced by Nationstar Mortgage Holdings, Inc. The servicing of the loans will be in accordance with requirements that prioritize borrower retention options in the event of a default and promote neighborhood stability.
Credit Suisse Securities (USA) LLC served as lead manager and sole bookrunner. Citigroup Global Markets Inc. and Wells Fargo Securities, LLC were the co-managers, and Loop Capital Markets, LLC was a selling group member.
To date, Freddie Mac has sold $7 billion in nonperforming loans (NPLs) and securitized $31 billion in re-performing loans (RPLs), of which $26 billion are in PCs and $5 billion are in structured offerings. Additional information about the company's seasoned loan offerings is at http://www.freddiemac.com/seasonedloanofferings/docs/rpl_sales_guidelines_factsheets.pdf
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, 2016, filed with the Securities and Exchange Commission (SEC) on February 16, 2017; 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, 2016, 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. A description of factors that could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements can be found in the company's Annual Report on Form 10-K for the year ended December 31, 2016, and its reports on Form 10-Q and Form 8-K, filed with the SEC and available on the Investor Relations page of the company's Web site at www.FreddieMac.com/investors and the SEC's website.
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.