Freddie Mac Prices $2.1 Billion Securitization of RPLs


Freddie Mac’s first Seasoned Credit Risk Transfer Trust (SCRT) offering of 2019 is a rated securitization of approximately $2.1 billion backed by a pool of seasoned re-performing loans (RPLs). 

The deal includes approximately $1.9 billion in guaranteed senior certificates and approximately $194 million in un-guaranteed mezzanine and subordinate certificates, the company says in a release.

The transaction is expected to settle on March 13.

The underlying collateral consists of 12,185 fixed- and step-rate modified, seasoned RPLs. The loans were modified to assist borrowers who were at risk of foreclosure to help them keep their homes.

The loans will have been performing for at least 12 months as of the cutoff date.

Specialized Loan Servicing is servicing the loans.

Bank of America Merrill Lynch and Citigroup Global Markets Inc. served as co-lead managers and joint bookrunners while JP Morgan Securities, Nomura Securities International, Inc., Samuel A. Ramirez & Company Inc. and Wells Fargo Securities served as co-managers.

To date, Freddie Mac has sold $8 billion of non-performing loans and securitized over $48 billion of RPLs consisting of $29 billion via fully guaranteed PCs, $16 billion via SCRT transactions, and $3 billion via Seasoned Loan Structured Transaction transactions. 

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