Freddie Mac has priced its first Seasoned Credit Risk Transfer Trust (SCRT) offering of 2022 – a securitization of approximately $1 billion, including both guaranteed senior and unguaranteed subordinate securities backed by a pool of seasoned reperforming loans (RPL).
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2022-1 includes approximately $958 million in guaranteed senior certificates and $86 million in unguaranteed mezzanine and subordinate certificates. The mezzanine certificates will be rated. The transaction is expected to settle on April 12.
The underlying collateral consists of 6,677 seasoned fixed-, step- and adjustable-rate RPLs, and includes both loans that were modified to assist borrowers at risk of foreclosure and loans that were never modified. On the closing date, the assets of the trust will consist of seasoned, reperforming mortgage loans that, as of the cutoff date, are either current or no more than 30 days delinquent under the MBA Method.
The loans are serviced by NewRez LLC d/b/a Shellpoint Mortgage Servicing and Specialized Loan Servicing LLC; they will be serviced in accordance with requirements that, in the event of default, prioritize borrower retention options and promote neighborhood stability.
Advisors to the transaction are Citigroup Global Markets Inc. and BofA Securities Inc. as co-lead managers and joint bookrunners, and J.P. Morgan Securities LLC, Nomura Securities International Inc., Oppenheimer & Co. Inc., Wells Fargo Securities LLC and Loop Capital Markets LLC as co-managers.
To date, Freddie Mac has sold over $9.7 billion of non-performing loans (NPL) and securitized more than $74 billion of RPLs consisting of $30 billion of fully guaranteed PCs, $33 billion of SCRT senior/sub securities, and over $11 billion of Seasoned Loans Structured Transaction (SLST) securities.