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Freddie Mac Structured Agency Credit Risk (STACR®)


Freddie Mac Structured Agency Credit Risk (STACR®) debt notes are unsecured and unguaranteed bonds issued by Freddie Mac whose principal payments are determined by the delinquency and principal payment experience on a STACR Reference Pool consisting of recently- acquired single family mortgages from a specified period. Freddie Mac transfers credit risk from the mortgages in the Reference Pool to credit investors who invest in the STACR debt notes.

Freddie Mac makes periodic payments of principal and interest on the Notes, and is compensated through a reduction in note balances for defined credit events on the Reference Pool, based on a fixed severity approach. 

Key Differences Between STACR Debt and Standard Freddie Mac Debt Securities

  • STACR debt investors may not receive their full principal and will receive periodic payments of principal as well as interest
  • Periodic and ultimate principal payments on STACR debt are influenced by the delinquency and principal payment experience on a STACR Reference Pool, in addition to predetermined principal payment rules
  • STACR debt coupon yields will likely be established at higher levels than standard Freddie Mac debt offerings

STACR Characteristics

  • One of the industry’s largest and most diversified reference pools
  • Freddie Mac holds the senior risk, which is unfunded and not issued
  • Senior mezzanine and junior mezzanine notes, which are not guaranteed by Freddie Mac, are sold to investors
  • Freddie Mac may retain a first-loss piece
  • STACR notes have a 10-year final maturity
  • The notes are paid monthly principal similar to a senior/subordinate, private label residential mortgage backed securities structure
  • Losses based on credit events in the reference pool are allocated to the Notes in reverse order of seniority, and reduce the balance of such Notes

STACR Reference Pool

  • A large and highly-diversified reference pool that helps to provide more stable and predictable performance
  • Freddie Mac’s Underwriting Standards
  • Freddie Mac’s internal fraud prevention and quality control review process
  • Standardized servicing guidelines that are uniform across Freddie Mac’s entire portfolio
  • Freddie Mac’s internal quality control sampling strategy will not distinguish between STACR Reference Pool loans and non-STACR Reference Pool loans

STACR Debt Structure

diagram of debt structure

Information Requests

Contact Information

If you have a general question, please contact:


Freddie Mac New Transactions:

(866) 903-2767

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