Seasoned Performing Loan Offerings
Subject to market conditions, Freddie Mac plans to periodically sell and securitize seasoned performing loans (SPLs) and re-performing loans (RPLs). These transactions are an important tool for the company to more effectively manage risk on its mortgage-related investments portfolio.
Freddie Mac Seasoned Performing Loan Offerings include –
- These are guaranteed Freddie Mac Gold PCs backed exclusively by RPLs.
- Investor disclosures have been expanded upon from typical Freddie Mac Gold PCs securities to include updated credit scores and loan-to-value ratios, modification details, and up to 3-years of aggregate payment history at securitization.
- These PCs have unique prefixes, none of which are TBA-eligible.
- These PCs have allowed Freddie Mac to transfer significant market risk to third party investors, primarily through resecuritization of these PCs in Freddie Mac REMICs.
Freddie Mac's RPL PCs include:
- Modified Fixed Rate PCs ("M-pools") – Freddie Mac Gold PCs backed by modified fixed rate loans that have been current for at least 6 months at issuance.
- Modified Step Rate PCs ("H-pools") – Freddie Mac Gold PCs backed by modified step rate loans that have been current for at least 6 months at issuance.
- Reinstated PCs ("R-pools") – Freddie Mac Gold PCs backed by non-modified fixed rate loans that were once delinquent, but have been reinstated and current for at least 4 months at issuance.
Additional information can be found on Freddie Mac's Mortgage Securities page. http://www.freddiemac.com/mbs/
- Freddie Mac RPL and SPL securitizations are Freddie Mac offerings of securities backed by RPLs or SPLs. These offerings may include senior securities guaranteed by Freddie Mac, and non-guaranteed subordinate securities.
- Freddie Mac RPL and SPL structured sales are sales of RPL or SPL pools by Freddie Mac, which involve the subsequent securitization of those RPL and SPL pools. Freddie Mac may purchase and guarantee senior securities from the securitization.
- These transactions are designed to provide the flexibility to manage credit and market risk
- Servicing on these transactions will be non-Guide, and will require prioritization of non-foreclosure resolutions for borrowers facing financial hardship
- Bond and loan level disclosures to investors will provide transparency on borrower outcomes, subject to applicable privacy laws and regulations
Freddie Mac's RPL Sales Pilot Requirements
PCs backed by RPLs Announcements
RPL and SPL Securitizations and Structured Sales Announcements
- August 29, 2017 $983 million Structured Sale
- May 17, 2017 $292 million Structured Sale
- June 29, 2016 $199 million Structured Sale
Post-Sale Press Releases
- August 11, 2017 - $2.47 billion
- June 20, 2017 - $292 million
- May 3, 2017 - $1.12 billion
- December 21, 2016 - $934 million
- July 26, 2016 - $199 million
- August 11, 2017 – SCRT 2017-2 Offering Circular
- May 3, 2017 – SCRT 2017-1 Offering Circular
- December 20, 2016 - SCRT 2016-1 Offering Circular