Freddie Mac Announces Inaugural Actual Loss Transaction for the STACR Program


MCLEAN, VA--(Marketwired - Apr 6, 2015) - Freddie Mac (OTCQB: FMCC) today announced its intention to pre-market its first actual loss STACR offering, STACR 2015-DNA1, beginning April 13th, 2015, subject to market conditions. 

The actual loss STACR offering will be similar to recent STACR deals, however, instead of allocating losses to the debt notes based upon a fixed severity approach, losses will be allocated in this transaction based on the actual losses realized on the related reference obligations. Freddie Mac will continue to sell the first loss and mezzanine tranches while retaining a vertical slice of each tranche sold. This will be Freddie Mac's inaugural actual loss transaction and its third STACR deal this year. 

Freddie Mac's historical loan-level dataset is available at www.freddiemac.com and covers approximately 17 million, 30-year, fixed-rate single-family mortgages originated between January 1, 1999, and June 30, 2013, which was recently updated to include certain loan-level actual loss data points. 

"We think the market of the future, where increasing amounts of credit risk will be transferred to private investors, will be actual loss based and we are excited to begin that transition with the next STACR offering," said Mike Reynolds, Freddie Mac Vice President of Credit Risk Transfer.

Credit Suisse will act as the structuring lead manager, with Citigroup as a co-lead manager and joint bookrunner.

This announcement is not an offer to sell any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac's Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission (SEC) on February 19, 2015; all other reports Freddie Mac filed with the SEC pursuant to Section 13(a) of the Securities Exchange Act of 1934 (Exchange Act) since December 31, 2014, excluding any information "furnished" to the SEC on Form 8-K; and all documents that Freddie Mac files with the SEC pursuant to Sections 13(a), 13(c) or 14 of the Exchange Act, excluding any information furnished to the SEC on Form 8-K.

Freddie Mac's press releases sometimes contain forward-looking statements. A description of factors that could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements can be found in the company's Annual Report on Form 10-K for the year ended December 31, 2014, and its reports on Form 10-Q and Form 8-K, filed with the SEC and available on the Investor Relations page of the company's Web site at www.FreddieMac.com/investors and the SEC's Web site at www.sec.gov.

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for approximately one in four home borrowers and is one of the largest sources of financing for multifamily housing. Additional information is available at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.