Freddie Mac has priced its second Seasoned Credit Risk Transfer Trust (SCRT) offering of 2021: a securitization of approximately $1 billion that includes both guaranteed senior and unguaranteed subordinate securities backed by a pool of seasoned reperforming loans (RPLs).
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2021-2 includes approximately $936 million in guaranteed senior certificates and approximately $65 million in unguaranteed mezzanine and subordinate certificates. The mezzanine certificates will be rated.
The underlying collateral consists of 8,927 fixed-, step- and adjustable-rate, never modified and modified seasoned RPLs, which were modified to assist borrowers who were at risk of foreclosure. Consistent with SCRT program criteria, as of the cut-off date, all the mortgage loans, including approximately 0.38% on a forbearance plan, have been performing and have not been delinquent for at least the prior six months.
The loans are serviced by Select Portfolio Servicing Inc. and will be serviced in accordance with requirements that prioritize borrower retention options in the event of default and promote neighborhood stability.
Advisors to this transaction are J.P. Morgan Securities LLC and Citigroup Global Markets Inc. as co-lead managers and joint bookrunners, and Amherst Pierpont Securities LLC, BofA Securities Inc., Nomura Securities International Inc., StoneX Financial Inc. and R. Seelaus & Co. LLC as the co-managers.
To date, Freddie Mac has sold over $8 billion of NPLs and securitized more than $72 billion of RPLs consisting of $30 billion of fully guaranteed PCs, $31 billion of SCRT senior/sub securitizations, and nearly $11 billion of seasoned loans structured transaction offerings.