MCLEAN, Va., June 26, 2019 (GLOBE NEWSWIRE) – Freddie Mac (OTCQB: FMCC) today announced its second Seasonal Loan Structured Transactions (SLST) offering of 2019 – a securitization backed by a pool of approximately 1 , $ 3 billion performing loans (RPL). The SLST program is a fundamental part of Freddie Mac’s seasoned loan offerings that reduce less liquid assets in its mortgage-related investment portfolio and eliminate credit and market risk through economically reasonable transactions.
The loan pool is made up of loans that have been modified to help borrowers at risk of foreclosure to help them keep their homes. Loans will be repaid in accordance with requirements which favor borrower retention options in the event of default and promote neighborhood stability.
The transaction involves a two-step process. The first step is an auction of the right to purchase the unsecured subordinated certificates backed by the RPLs, subject to the conditions set out in a securitization condition sheet. The successful tenderer will be chosen on the basis of economic criteria, subject to meeting Freddie Mac’s internal reserve levels. In the second step, the SLST Trust will issue both senior and subordinate certificates. Freddie Mac will guarantee some senior certificates and may initially keep some of those certificates. The winner of the auction will purchase the subordinate certificates upon issuance.
Freddie Mac’s advisers on this transaction are Wells Fargo Securities, LLC and BofA Securities, Inc. as co-lead managers and associate bookrunners, and Citigroup Global Markets Inc., JP Morgan Securities LLC, Nomura Securities International, Inc. and Samuel A Ramirez & Company, Inc. (a minority owned company) as co-managers.
To date, Freddie Mac has sold $ 8 billion in non-performing loans and securitized over $ 53 billion in RPL, including (i) $ 29 billion through fully secured PCs, (ii) $ 20 billion through the senior seasonal credit risk transfer (SCRT) / sub-securitizations, and (iii) $ 4 billion via SLST transactions. Additional information on the company’s seasoned loan offerings can be found at: http://www.freddiemac.com/seasonedloanofferings/.
This announcement does not constitute an offer to sell any Freddie Mac securities. Offers for any given security are only made through the applicable offering circulars and related supplements, which incorporate Freddie Mac’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018, filed with the Securities and Exchange Commission (SEC) on February 14, 2019; all other reports filed by Freddie Mac with the SEC in accordance with Section 13 (a) of the Securities Exchange Act of 1934 (Exchange Act) since December 31, 2018, excluding any information “provided” to the SEC on Form 8-K; and all documents that Freddie Mac files with the SEC in accordance with Sections 13 (a), 13 (c) or 14 of the Exchange Act, excluding any information “provided” to the SEC on Form 8- K.
Freddie Mac’s press releases sometimes contain forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, some of which are beyond the control of the company. Management’s expectations for the future of the Company necessarily involve a number of assumptions, judgments and estimates, and various factors could cause actual results to differ materially from the expectations expressed in these forward-looking statements and ‘others. These assumptions, judgments, estimates and factors are discussed in the company’s annual report on Form 10-K for the year ended December 31, 2018, and its reports on Form 10-Q and Form 8-K, which are available at the Investor Relations site. Company website page at www.FreddieMac.com/investors and SEC website at www.sec.gov. The company makes no commitment to update any forward-looking statements it makes to reflect events or circumstances occurring after the date of this press release.
The financial and other information contained in the documents accessible on this page are only valid as of the date of these documents. The information could be out of date and no longer accurate. Freddie Mac assumes no obligation, and disclaims any duty, to update the information contained in these documents.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our inception by Congress in 1970, we’ve made housing more accessible and affordable for buyers and renters in communities across the country. We are building a better housing finance system for buyers, tenants, lenders and taxpayers. Learn more about FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.
MEDIA CONTACT: Fred Solomon