SOURCE: Freddie Mac

Freddie Mac

March 25, 2016 13:25 ET

Freddie Mac Announces Second ACIS® Credit Risk Transaction of 2016 With a $336 Million Limit

MCLEAN, VA--(Marketwired - Mar 25, 2016) - Freddie Mac (OTCQB: FMCC) announced today that it has obtained new insurance policies under its successful Agency Credit Insurance Structure (ACIS®) program. Through ACIS, Freddie Mac obtains insurance policies that transfer a portion of the credit risk associated with its Structured Agency Credit Risk (STACR®) debt note reference pools to insurance and reinsurance companies around the globe.

This new transaction provides credit loss protection up to a combined maximum limit of approximately $336 million of losses on single-family loans and transfers much of the remaining credit risk associated with the second STACR debt issuance this year, STACR 2016-HQA1.

"We are very pleased about the continued partnership Freddie Mac has developed with the reinsurance market. This market has proved to be a durable partner for credit risk transfer," said Kevin Palmer, senior vice president of Single-Family credit risk transfer for Freddie Mac.

Freddie Mac has placed approximately $4.3 billion in insurance coverage through sixteen ACIS transactions since the program's inception in 2013. 

Freddie Mac has led the market in introducing new risk-sharing initiatives with 19 STACR offerings, two Whole Loan Securities(SM) (WLS(SM)) offerings and 16 ACIS transactions since mid-2013. Through STACR, WLS and ACIS, Freddie Mac has transferred a substantial portion of credit risk on more than $440 billion of UPB on single-family mortgages. Freddie Mac was the first agency to market credit risk transfer transactions with STACR, WLS and ACIS, and the company has since grown its investor base to approximately 190 unique investors, including reinsurers.

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, 2015, filed with the Securities and Exchange Commission (SEC) on February 18, 2016; 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, 2015, 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, 2015, 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 one in four home borrowers and is the largest source of financing for multifamily housing. Additional information is available at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.