MCLEAN, VA -- (Marketwired) -- 05/24/17 -- Freddie Mac (OTCQB: FMCC) announced today its second front-end credit risk transfer offering, Freddie Mac Deep MI CRT DI 2017-1. Through a forward credit insurance policy provided by a panel of mortgage insurance company affiliates, this structured transaction provides additional coverage beyond the primary mortgage insurance on 30-year fixed-rate mortgages with 80-97 percent LTVs -- which is placed immediately upon their sale to Freddie Mac. Transactions are executed via a competitive, transparent auction process.
"We listened to market feedback from our successful pilot and made enhancements to our Deep MI CRT program -- most notably we extended the forward commitment on loans purchased across our diverse lender base and further improved the structure," said Gina Subramonian Healy, vice president of credit risk transfer. "This is an economically sensible way to make the program more attractive to insurers while improving pricing certainty."
Freddie Mac has led the market in introducing new credit risk-sharing offerings with Structured Agency Credit Risk (STACR®), Agency Credit Insurance Structure (ACIS®) and Whole Loan Securities (WLS(SM)). The company has since grown its investor base to more than 230 unique investors, including insurers and reinsurers. Since 2013, the company has transferred a significant portion of credit risk on approximately $727 billion of UPB on single-family mortgages.
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.
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