Credit Risk Offerings
Freddie Mac has transferred a significant portion of mortgage credit risk on $1 trillion of residential mortgages. Our innovation and leadership in credit risk transfer is building a better housing finance system for the nation.
Freddie Mac is leading the market with initiatives to reduce taxpayer exposure and offer private investors new and innovative ways to invest in the post-crisis creditworthiness of the U.S. residential housing market. Currently Freddie Mac offers three distinct single-family risk sharing initiatives that appeal to a wide variety of investors such as hedge funds, mutual funds, REITS, banks, credit unions, and insurance and reinsurance companies. See how it works.
Freddie Mac Structured Agency Credit Risk (STACR®)
Freddie Mac offers a type of credit security called Structured Agency Credit Risk (STACR) securities. With STACR securities, Freddie Mac intends to reduce its exposure to single-family mortgage credit risk for recently-purchased loans and open the doors for risk transfer to private investors. Through STACR, Freddie Mac is working to minimize potential credit losses and add a layer of protection against taxpayers’ exposure. More
Freddie Mac Structured Agency Credit Risk – Securitized Participation Interests (STACR SPISM)
STACR SPISM is a new Freddie Mac CRT capability, and is an issuance of unguaranteed credit bonds. A cash securitization, STACR SPI securities are REMIC regular interests and appeal to a wide variety of investors. Using on-the-run mortgage loans purchased through our cash window (versus a guarantor swap), we issue Gold PCs and STACR SPI securities, both backed by participation interests in the mortgage loans. Like our STACR HQA and DNA series, STACR SPI leverages Freddie Mac’s strong credit, servicing, QC and operational policies and processes. More
Freddie Mac Agency Credit Insurance Structure (ACIS®)
Freddie Mac will periodically purchase insurance against some of the credit risk associated with its new Single-Family book of business. This type of insurance coverage is intended to attract new sources of private capital from non-mortgage guaranty insurers and reinsurers interested in assuming a portion of the credit risk on specified portions of Freddie Mac’s high-quality Single-Family mortgage loan portfolio. More
Freddie Mac Whole Loan Securities (WLSSM)
Whole Loan Securities transfers credit risk to the capital markets through a combination of guaranteed senior and non-guaranteed subordinate classes. WLS features whole loans purchased through Freddie Mac’s cash window and taps into a traditional securitization method in which non-agency mortgage loans have been securitized in the private label market while utilizing Freddie Mac’s underwriting, servicing and quality control standards. Whole Loan Securities builds on Freddie Mac’s award-winning Structured Agency Credit Risk (STACR®) and Agency Credit Insurance Structure (ACIS®) offerings. More
Benefits of Risk Sharing Credit Products & Innovations
- Provide multiple avenues for sharing mortgage credit risk with a diverse spectrum of private investors.
- Reduces taxpayer's credit risk exposure to the mortgage industry.
- Furthers Freddie Mac's strategic goal to develop multiple forms of risk-sharing structures.
- Aligns with the FHFA 2016 conservatorship goals.
- Freddie Mac STACR Reconciliation Announcement
- Update Supporting Potential STACR Enhancement
- Future STACR Disclosure Enhancement
If you have a general question, please contact:
Freddie Mac New Transactions:
- Credit Risk Transfer Infographic
- Reference Pool Disclosure File Layout (effective July 2018)
- Reference Pool Glossary (effective May 2018)
- Reference Pool Disclosure Guide (pre May 2018)
- SAS/R Scripts
- Single Family Loan-Level Dataset
- SPI Disclosure Guide
- WLS Disclosure Guide
- SLO Disclosure Guide
- 2018 STACR Issuance Calendar