SOURCE: Freddie Mac

Freddie Mac

March 13, 2017 10:09 ET

Freddie Mac Prices First Whole Loan Securities of the Year

$640 Million Senior/Sub Credit Risk Transfer Offering Largest to Date

MCLEAN, VA--(Marketwired - Mar 13, 2017) - Freddie Mac (OTCQB: FMCC) announced the pricing of its fifth Freddie Mac Whole Loan Securities(SM) (WLS(SM)) transaction, an offering of approximately $640 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 approximately $2.4 billion in WLS.

"We are pleased with the interest in our first WLS transaction of 2017, the largest WLS deal to date," said Mike Reynolds, vice president of Freddie Mac Credit Risk Transfer. "Our work to educate investors about this asset class is ongoing and we look forward to continued strong investor interest in WLS."

Freddie Mac Whole Loan Securities Trust, Series 2017-SC01, a Freddie Mac trust, will issue approximately $602 million in guaranteed senior certificates and approximately $38 million in unguaranteed subordinate certificates. The collateral backing the certificates are 1,227 fixed-rate super-conforming loans.

Barclays Capital Inc. and BofA Merrill Lynch are co-lead managers and joint bookrunners. WLS 2017-SC01 is expected to settle later this month.

Freddie Mac has led the market in introducing new credit risk-sharing offerings with STACR, Agency Credit Insurance Structure (ACIS®) and Whole Loan Securities (WLS(SM)). The company has since grown its investor base to more than 200 unique investors, including insurers and reinsurers. Since 2013, the company has transferred a significant portion of credit risk on approximately $666 billion of UPB on single-family mortgages.

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, 2016, filed with the Securities and Exchange Commission (SEC) on February 16, 2017; 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, 2016, 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, 2016, 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 website.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.