SOURCE: Freddie Mac

Freddie Mac

November 16, 2016 16:00 ET

Freddie Mac Prices Final Whole Loan Securities of the Year

$460 Million Senior/Sub Credit Risk Offering

MCLEAN, VA--(Marketwired - Nov 16, 2016) -  Freddie Mac (OTCQB: FMCC) announced the pricing of its fourth Freddie Mac Whole Loan Securities(SM) (WLS(SM)) transaction, an offering of approximately $460 million of guaranteed senior and non-guaranteed subordinate actual loss securities.

By shifting some of its credit risk from the underlying super-conforming mortgages to subordinate investors, WLS is another important offering in Freddie Mac's single-family credit risk transfer program. WLS preserves many of the features found in Freddie Mac Gold PCs while leveraging the characteristics of traditional private label securities. To date, the company has issued nearly $1.8 billion in WLS.

"We are pleased with the pricing levels and depth of investor participation in the WLS program," said Kevin Palmer, senior vice president of Freddie Mac Credit Risk Transfer. "We look forward to continued issuance in 2017."

Freddie Mac Whole Loan Securities Trust, Series 2016-SC02, a Freddie Mac trust, will issue approximately $432 million in guaranteed senior certificates and approximately $28 million in unguaranteed subordinate certificates. The collateral backing the certificates are 886 fixed-rate super-conforming loans.

BofA Merrill Lynch and Wells Fargo Securities are co-lead managers and joint bookrunners. WLS 2016-SC02 is expected to settle later this month.

Freddie Mac has led the market in introducing new credit risk-sharing initiatives with Structured Agency Credit Risk (STACR®), Agency Credit Insurance Structure (ACIS®) and WLS, and was the first agency to market these types of credit risk transfer transactions. Since 2013, the company has transferred a significant portion of credit risk on approximately $580 billion of UPB on single-family mortgages. The company has grown its investor base to more than 200 unique investors, including insurers and reinsurers. Additional information about the company's single-family risk sharing offerings is available at http://www.freddiemac.com/creditriskofferings/.

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 website at www.FreddieMac.com/investors and the SEC's website.

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 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.