Freddie Mac Prices $2.2 Billion Securitization of RPLs


Freddie Mac is offering a rated securitization of approximately $2.2 billion including both guaranteed senior and unguaranteed subordinate securities backed by a pool of seasoned re-performing loans (RPLs).

This is the company’s third Seasoned Credit Risk Transfer Trust (SCRT) offering of 2019.

The SCRT securitization program is a fundamental part of Freddie Mac’s seasoned loan offerings which reduce less liquid assets in its mortgage-related investments portfolio and sheds credit and market risk via economically reasonable transactions.

This offering includes approximately $2.0 billion in guaranteed senior certificates and approximately $202 million in unguaranteed mezzanine and subordinate certificates.

The transaction is expected to settle on August 14.

The underlying collateral consists of 13,018 fixed- and step-rate, seasoned RPLs which were modified to assist borrowers who were at risk of foreclosure to help them keep their homes.

As of the cutoff date, all of the mortgage loans have been performing for at least 12 months.

The loans are serviced by Specialized Loan Servicing.

Purchasers of these loans are required to ensure that they are serviced in accordance with requirements that prioritize borrower retention options in the event of default and promote neighborhood stability.

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