Freddie Mac has priced its second Seasoned Credit Risk Transfer Trust (SCRT) offering of the year: a securitization of approximately $1.6 billion, including both guaranteed senior and unguaranteed subordinate securities backed by a pool of seasoned reperforming loans (RPLs).
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2020-2, includes approximately $1.4 billion in guaranteed senior certificates and approximately $204 million in unguaranteed mezzanine and subordinate certificates. The mezzanine certificates will be rated. The underlying collateral consists of 9,702 fixed- and step-rate, seasoned RPLs, most of which were modified to assist borrowers who were at risk of foreclosure to help them keep their homes.
As of the cutoff date, 6.84% of the mortgage loans have been flagged as on a forbearance plan with the servicer. Consistent with program criteria, as of the cutoff date, all the mortgage loans, including those on a forbearance plan, have been performing and not delinquent in the last six months using the MBA method of calculation. The loans are serviced by Select Portfolio Servicing Inc.
To date, Freddie Mac has sold over $8 billion of non-performing loans (NPLs) and securitized more than $62 billion of RPLs consisting of $29 billion of fully guaranteed PCs, $27 billion of SCRT senior/sub securitizations, and $7 billion of Seasoned Loans Structured Transaction (SLST) offerings.