Freddie Mac CRT Program Protects $586 Billion of Single-Family Mortgages This Year


Freddie Mac’s Single-Family business has announced that its Credit Risk Transfer (CRT) program reported year-to-date CRT issuance of $14.5 billion, protecting $585.5 billion in unpaid principal balance of single-family mortgages. In the third quarter, CRT issuance of $4.6 billion provided credit protection on $166.6 billion of single-family mortgages. The issuances included STACR (Structured Agency Credit Risk), ACIS (Agency Credit Insurance Structure), subordination and certain lender risk sharing transactions.

“At the end of the third quarter 2021, Freddie Mac maintained its position as the leading programmatic issuer of single-family CRT, and we continued to outpace 2020 with more than 130 unique participants across STACR and ACIS,” says Freddie Mac’s Mike Reynolds, vice president of Single-Family CRT. “In addition to focusing on programmatic issuances, we launched our first-ever repurchase of STACR notes in the third quarter, demonstrating our commitment to maintaining the cost-effectiveness of the CRT program.”

Through its flagship offerings alone, Freddie Mac issued approximately $13.5 billion across seven STACR and nine ACIS transactions in the first three quarters. Among the notable transactions in the third quarter was ACIS 2021-SAP7. At $1.2 billion, it was Freddie Mac’s largest-ever (re)insurance deal.

Since the first CRT transaction in 2013, Freddie Mac’s Single-Family CRT program has cumulatively transferred approximately $81 billion in credit risk on approximately $2.5 trillion in mortgages through STACR, ACIS, certain senior subordination securitization structures and certain lender risk sharing transactions. As of September 30, 2021, approximately 50% of the Single-Family mortgage portfolio was covered by credit enhancement.

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