Freddie Mac Obtains New Insurance Policies For ACIS Program

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Freddie Mac reports that it has obtained two new insurance policies under its Agency Credit Insurance Structure (ACIS) program that collectively total approximately $618 million of coverage underlying a $66 billion reference pool of mortgages.

This brings the company’s ACIS credit risk transfer for 2018 to approximately $3 billion limit placed.

These policies transfer a portion of the remaining credit risk on Freddie Mac’s STACR 2018-DNA3 pool and STACR 2018-HQA2 pool.

“Freddie Mac’s flagship ACIS offerings continue to receive substantial interest from international insurers and reinsurers seeking investment opportunities in the U.S. housing market,” says Gina Healy, vice president of credit risk transfer, in a release. “The strong demand underscores the programmatic nature of our offerings coupled with strong credit performance of the underlying collateral and reinforces our prominent role as a credit risk manager.”

The ACIS 2018-DNA3 has a reference pool of single-family mortgages consisting of fixed-rate, single-family mortgages with an original term of 241 to 360 months with LTVs ranging from 60 to 80 percent. The ACIS 2018-HQA2 has a reference pool of single-family mortgages consisting of fixed-rate, single-family mortgages with an original term of 241 to 360 months with LTVs ranging from 80 to 97 percent.

Freddie Mac has placed approximately $11 billion of insurance coverage through more than 40 ACIS transactions, which represents a significant portion of $43 billion cumulative credit risk Freddie Mac has transferred to investors.

Since 2013, the company has transferred a portion of credit risk on more than $1.2 trillion of unpaid principal balance on single-family mortgages and has grown its investor base to more than 220 unique investors, including insurers and reinsurers.

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