Freddie Mac's STACR Debt Notes Earns Deal of the Year Honors From GlobalCapital


MCLEAN, VA--(Marketwired - Jun 11, 2015) - Freddie Mac's (OTCQB: FMCC) Structured Agency Credit Risk (STACR®) debt notes have been named "RMBS Deal of the Year" by GlobalCapital, a leading financial news and data service covering the capital markets. This is one of the premier capital markets awards that pay tribute to the issuers, investors, banks and law firms that are pushing the boundaries of securitization in rapidly changing markets and helping the market move forward. Last year, STACR earned honors from GlobalCapital's parent company, Euromoney, for Global Structured Deal of the Year.

"We are proud of our role in leading market innovations that return value to the nation and move housing forward," said Kevin Palmer, vice president of Credit Risk Transfer. "We created a new asset class with STACR that has brought a significant amount of private capital into the mortgage market and demonstrated the viability of multiple types of risk transfer transactions involving single-family mortgages."

Through STACR, Freddie Mac transfers a portion of its credit risk, including first loss, on certain groups of loans to private investors. The first STACR transaction in 2013 sparked demand that has been growing steadily. Freddie Mac was the first agency to market credit risk transfer transactions with STACR and Agency Credit Insurance Structure (ACIS®) and has since grown its investor base to more than 160 unique investors, including many of the largest money managers in the U.S. Freddie Mac's STACR offerings have evolved over time and recent offerings were the first of their kind to sell first loss and actual loss risk.

Since inception private investors have provided loss protection of more than $10 billion on single family loans that Freddie Mac transferred through STACR securities and ACIS reinsurance transactions and laying off risk on $280 billion of UPB.

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 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.