Freddie Mac Agency Credit Insurance Structure (ACIS®)
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 Structure (ACIS®), 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 Freddie Mac's high quality Single-Family loans which are associated with Structured Agency Credit Risk (STACR®) debt note reference pools.
Since the initial November 2013 ACIS transaction, the program has executed 14 transactions and transferred $3.5 billion in risk.
- Most of the risk remaining in STACR reference tranches after bond issuance is insured under the ACIS program
- Freddie Mac holds the senior risk, which is unfunded and not issued
- Freddie Mac may retain a first-loss piece
- Participants will receive initial premiums at the levels agreed to in the Policy, which are adjusted based on the reference STACR bond rules for the associated reference pool for up to 12.5 years; premium is payable on a monthly basis in arrears
- A collateral trust account made up of cash and highly liquid assets will be required
The above reflects the latest iteration of the ACIS transaction and is subject to change per revisions to the ACIS framework or structure.
- Bond Administrators: do not delete SSI
- Reference Pool Disclosure Guide
- Single Family Loan-Level Dataset & Summary Statistics
If you have a general question, please contact:
Freddie Mac New Transactions: