mortgage investment

Freddie Mac Transfers Risk on $215 Billion of Single-Family Mortgages in 2016

Approximately $25 Billion Loss Protection Provided to Taxpayers to Date

MCLEAN, VA., January 11, 2017 /MarketWired/ — Freddie Mac (OTCQB: FMCC) transferred $8.4 billion in potential credit losses on nearly $215 billion of single-family mortgages to private market investors across its four single-family credit risk offerings in 2016.

Since 2013, the company has led the market in credit risk transfer on approximately $602 billion of single-family mortgages — providing approximately $25 billion of loss protection to taxpayers.



Single-Family Credit Risk Transfer Issuance:

($ in billions)
($ in billions)
STACR Issuances$5.5$18.2
ACIS Transactions$2.7$6.2

Represents the maximum potential credit exposure transferred to investors. Excludes seller indemnification and Deep MI CRT.

“It was a very good year for Freddie Mac’s single-family credit risk transfer program,” said Kevin Palmer, SVP of single-family portfolio management. “Investor demand was strong across all our offerings in 2016 — STACR®, ACIS® and WLS(SM) — and we now have more than 200 unique investors in our program. It’s clear that credit risk transfer is becoming a permanent fixture in the fixed-income and reinsurance markets.”

Palmer continued, “We look forward to being in the market regularly with our current offerings in 2017. At the same time, we’ll continue to work toward our strategic goal to explore new asset classes for investors that protect taxpayers and meet our core key principals of credit risk transfer.”

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 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, Twitter @FreddieMac and Freddie Mac’s blog.