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Product Overview: Giant PC Program

Freddie Mac Giant PCs are single-class pass-through securities that enable investors to manage their portfolios more efficiently by consolidating smaller PCs into larger Giant PCs. Introduced in 1988, Giant PCs are popular with dealers and investors because they are an efficient and profitable way to aggregate production and investment portfolios. Freddie Mac offers fixed-rate Gold Giant PCs and adjustable-rate (ARM) Giant PCs.

Investor Benefits

"Introduced in 1988, Giant PCs are popular with dealers and investors because they are an efficient and profitable way to aggregate production and investment portfolios."

Lower Borrowing and Security Administration Costs

Giant PCs lower internal processing and accounting costs because it is easier to track the balance and monitor the monthly payments for one pool. In addition, wiring a single Giant pool is more economical than wiring many pools. Because administration and transaction costs are lower for larger pools, dealers and financial institutions typically charge lower financing rates.

Attractive Pricing

The Freddie Mac Giant PC program allows an investor to combine odd lots into one pool to achieve more standardized pricing on an unpaid balance of $1 million or more. They also provide better repurchase financing by improving an investors’ ability to negotiate lower borrowing costs.

Increased Market Liquidity

Since their introduction to the market in 1988, Giant PCs have become a very liquid and marketable product. Larger Giant PCs are generally more attractive to the market than smaller pools, and are more likely to meet the Securities Industry and Financial Markets Association (SIFMA) “good delivery” guidelines.

Ease of Execution

Guidelines for forming Freddie Mac Giant PCs are based on predetermined pooling combinations. For more information please visit Freddie Mac’s website at www.FreddieMac.com/mbs/html/product/giants.html.

Custom Pooling

Giant PCs can be used to structure pools with specific characteristics, such as a pool with greater geographic diversity or conversely combining many similar pools to get a specific geographic concentration.

Types of Giant PCs

Fixed-rate Gold Giant PCs

Newly issued, fixed-rate Giant PCs are Gold Giant PCs with the corresponding Gold PC payment cycle of 45 days. Fixed-rate Giant PCs pay principal and interest on the 15th of each month to the holder of record as of the close of business on the last day of the preceding month.

Fixed-rate Giant PC accrual and payment diagram

Formation Guidelines:

  • Newly formed Gold PC pools are eligible for fixed-rate Gold Giant PCs the same day they are settled with the exception of the last business day of the month.
  • Previously formed Giant PCs are eligible collateral for new Giant PCs.
  • For assistance with the execution of a Giant PC and fixed-rate pool eligibility requirements, please email giants@freddiemac.com or visit Freddie Mac’s website at www.FreddieMac.com/mbs/html/product/giants.html.

ARM Giant PCs

All ARM Giant PCs bear interest at a pass-through coupon that adjusts monthly based on the weighted average of the interest rates of the underlying PCs. The PC coupon is expressed as an exact decimal truncated to three decimal places. The mortgages underlying a specific ARM Giant PC may have different adjustment rates. ARM Giant PCs pay principal and interest on the 15th of each month to the holder of record as of the close of business on the last day of the month two months prior to payment.

Formation Guidelines:

ARM Giant PC accrual and payment diagram

Investor Tools

From pricing and settlement through post-sale, Freddie Mac has responsive and knowledgeable professionals who assist dealers and investors every step of the way. Communication with business partners is important to Freddie Mac – it fuels the quick turnaround of transactions and provides quick access to information post-sale. Experienced transaction managers, Web-based securities information and FMAC, Freddie Mac's Bloomberg site, are just a few of the informational resources Freddie Mac uses to provide exceptional service.

Transaction Managers

Freddie Mac supports the Giant PC process by providing the assistance of experienced transaction managers in its Securitization department.  To speak with a transaction manager about Freddie Mac’s Giant PC program, please email giants@freddiemac.com.

Investor Inquiry

Investor Inquiry is Freddie Mac's team of securities specialists who answer hundreds of calls each month from dealers and investors of mortgage securities products. Investor Inquiry answers a wide range of questions from general questions about disclosure to security-specific inquiries. Dealers and investors can reach Investor Inquiry at (800) 336-3672 from 9:00 a.m. to 5:00 p.m, EST, Monday through Friday or by emailing investor_inquiry@freddiemac.com.

Mortgage Securities Website

Freddie Mac provides a comprehensive array of data, including product information, CUSIP lookup, subscription services and legal documentation for Giant PCs on its website. To access securities information, visit Freddie Mac's website at http://www.FreddieMac.com/mbs/.

 Bloomberg (FMAC <GO>)

A wide range of information and data is available on Freddie Mac’s Bloomberg site including Giant prefix eligibility and other mortgage securities issuance reports.

For additional information about Freddie Mac Giant PCs, visit Freddie Mac's website at http://www.FreddieMac.com/mbs/html/product/giants.html or contact Investor Inquiry at (800) 336-3672.

This product overview is not an offer to sell or solicitation of an offer to buy any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac's Information Statement and related supplements.

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