Freddie Mac Agency Credit Insurance StructureSM (ACISSM)
Freddie Mac may periodically enter into insurance/reinsurance transactions to further transfer risk associated with a portion of its credit exposure in the residential mortgage market. This insurance-based risk sharing vehicle, Agency Credit Insurance StructureSM, represents a new source of private capital that will shoulder part of the credit risk associated with certain Freddie Mac loans. These transactions provide an innovative opportunity for global insurance and reinsurance companies to invest in the credit performance of select volumes of Freddie Mac’s high quality Single-Family loan portfolio.
Agency Credit Insurance Structure 2013-1
Freddie Mac purchased an insurance policy on November 12, 2013, that was underwritten by Arch Reinsurance Ltd. and covered up to a maximum of $77.4 million of credit losses.
Agency Credit Insurance Structure 2014-1
Freddie Mac purchased two insurance policies effective April 1, 2014, that were underwritten by a panel of insurers/reinsurers and covered up to a combined maximum of approximately $269.5 million of credit losses.
Agency Credit Insurance Structure 2014-2
Freddie Mac purchased four insurance policies effective June 30, 2014, that were underwritten by a panel of insurers/reinsurers and covered up to a combined maximum of approximately $285 million of credit losses.