Freddie Mac Obtains Insurance Coverage to Cover Certain Credit Losses
November 12, 2013
Today Freddie Mac issued a press release announcing that we have obtained an insurance policy to cover credit losses for a portion of the credit risk associated with Single-Family loans funded in the third quarter of 2012.
The new insurance coverage is part of Freddie Mac's plan to expand risk-sharing with private firms and transfer mortgage credit risk away from taxpayers. Freddie Mac hopes to obtain more of these insurance policies in future transactions.
In July 2013, we announced another credit risk transfer initiative, the Structured Agency Credit Risk (STACR®). We announced our second STACR debt-sharing transaction on November 5, 2013. For questions, please contact your Freddie Mac representative.