SOURCE: Freddie Mac

Freddie Mac

July 20, 2017 13:55 ET

Freddie Mac Prices Second Whole Loan Securities Deal of 2017

First WLS Deal to Offer Exchangeable and MACR options with Sequential and Pass-Through Senior Bonds

MCLEAN, VA--(Marketwired - Jul 20, 2017) - Freddie Mac (OTCQB: FMCC) announced the pricing of its sixth
Freddie Mac Whole Loan Securities(SM)(WLS(SM)) transaction, an offering of approximately $571 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 $3 billion in WLS.

Freddie Mac Whole Loan Securities Trust, Series 2017-SC02, a Freddie Mac trust, will issue approximately $540 million in guaranteed senior certificates and approximately $32 million in unguaranteed subordinate certificates. Approximately 53 percent of the senior certificates will be delivered in front/back sequential form, while approximately 47 percent will be delivered in pass-through form. The collateral backing the certificates consists of 1,079 fixed-rate super-conforming loans.

BofA Merrill Lynch and Wells Fargo Securities are co-lead managers and joint bookrunners. WLS 2017-SC02 is expected to settle later this month.

Freddie Mac has led the market in introducing new credit risk-sharing offerings with Structured Agency Credit Risk (STACR®), Agency Credit Insurance Structure (ACIS®) and WLS(SM). The company has since grown its investor base to more than 220 unique investors, including insurers and reinsurers. Since 2013, the company has transferred a significant portion of credit risk on approximately $770 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.

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