Freddie Mac Issues Securitization of Seasoned RPLs


Freddie Mac has priced its first Seasoned Credit Risk Transfer Trust (SCRT) offering of 2020: a securitization of approximately $1.8 billion, including both guaranteed senior and unguaranteed subordinate securities backed by a pool of seasoned re-performing loans (RPLs).

Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2020-1 includes approximately $1.7 billion in guaranteed senior certificates and approximately $177 million in unguaranteed mezzanine and subordinate certificates. The mezzanine certificates will be rated. The transaction is expected to settle on March 10, 2020.

The underlying collateral consists of 10,992 fixed- and step-rate, seasoned RPLs that were modified to assist borrowers who were at risk of foreclosure. As of the cutoff date, all of the mortgage loans have been performing for at least six months.

The loans are serviced by Specialized Loan Servicing LLC and will be serviced in accordance with requirements that prioritize borrower retention options in the event of default and promote neighborhood stability.

Advisors to this transaction are BofA Securities Inc. and Nomura Securities International Inc. as co-lead managers and joint bookrunners, and Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC and R. Seelaus & Co. as the co-managers.

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