Freddie Mac Single-Family Credit Risk Transfer Program Marks 100th ACIS® Transaction
Rhea-AI Summary
Freddie Mac's Single-Family Credit Risk Transfer (CRT) Program has reached a significant milestone with its 100th ACIS® (Agency Credit Insurance Structure) transaction. Since 2013, the program has credit protected over $2.5 trillion in unpaid principal balance (UPB) of mortgage loans through $35 billion of ACIS coverage with (re)insurers. The latest transaction, ACIS 2024-SPH2, transfers risk on a pool of 20-year to 30-year fixed-rate mortgages with a total liability limit of $376 million.
In the first half of 2024, Freddie Mac's CRT issuance totaled nearly $3.2 billion, protecting over $99 billion UPB of mortgage loans. The company also executed tender offers and call options on previous transactions. As of June 30, 2024, approximately 62% of Freddie Mac's Single-Family mortgage portfolio was covered by credit enhancement. Since 2013, Freddie Mac has cumulatively transferred about $111 billion of credit risk on more than $3.5 trillion of single-family mortgages.
AI-generated analysis. Not financial advice.
Positive
- Reached 100th ACIS transaction milestone, demonstrating program stability and growth
- Credit protected over $2.5 trillion in unpaid principal balance since 2013
- $3.2 billion in CRT issuance in first half of 2024, protecting over $99 billion UPB
- 62% of Single-Family mortgage portfolio covered by credit enhancement
- Cumulatively transferred $111 billion of credit risk on more than $3.5 trillion of mortgages since 2013
Negative
- None.
News Market Reaction – FMCC
On the day this news was published, FMCC declined 1.83%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
MCLEAN, Va., Aug. 12, 2024 (GLOBE NEWSWIRE) -- Freddie Mac’s (OTCQB: FMCC) Single-Family Credit Risk Transfer’s (CRT) Program announced today that it has closed its 100th ACIS® (Agency Credit Insurance Structure) transaction. Since the first transaction in 2013, Freddie Mac has credit protected more than
“For over a decade, the ACIS program has helped reduce Freddie Mac’s credit risk while offering (re)insurers worldwide an opportunity to invest in and support the U.S. single-family residential credit market,” said Freddie Mac’s Christian Valencia, vice president of Single-Family CRT. “Whether as stand-alone transactions or paired with our pioneering STACR® (Structured Agency Credit Risk) offerings, every ACIS contract features large, well-diversified loan reference pools managed according to Freddie Mac’s end-to-end risk mitigation protocols.”
The 100th transaction, ACIS 2024-SPH2, transfers risk on an initial reference pool of fully amortizing 20-year to 30-year fixed rate first lien mortgages with original LTVs greater than 80 percent and less than or equal to 97 percent. The total limit of liability is
“We’re proud to have worked with nearly 60 (re)insurers from the very first ACIS transaction to the 100th and we’re grateful for their years of support,” said Freddie Mac Senior Director Jeff Shue, head of the ACIS program. “The commitment of our (re)insurance counterparties has contributed much to making ACIS the innovative and respected credit risk transfer vehicle it is today.”
Freddie Mac Single-Family CRT in the First Half of 2024
Total CRT issuance from Freddie Mac’s flagship STACR and ACIS transactions in the first half of 2024 approached
Additionally in the first half, the company executed two tender offers for approximately
As of June 30, 2024, approximately 62 percent of the Freddie Mac Single-Family mortgage portfolio was covered by credit enhancement including private mortgage insurance.
Freddie Mac launched its Single-Family CRT program in 2013. Since then, Freddie Mac has cumulatively transferred approximately
About Freddie Mac Single-Family Credit Risk Transfer
Freddie Mac’s Single-Family CRT programs transfer credit risk away from U.S. taxpayers to global private capital via securities and (re)insurance policies, providing stability, liquidity and affordability to the U.S. housing market. The GSE Single-Family CRT market was founded when Freddie Mac issued the first STACR® (Structured Agency Credit Risk) notes in July 2013. In November 2013, ACIS® (Agency Credit Insurance Structure) was introduced. Today, the industry-leading and award-winning programs attract institutional investors and (re)insurance companies worldwide. For specific STACR and ACIS transaction data, visit Clarity Data Intelligence®.
About Freddie Mac
Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website | Consumers | Twitter | LinkedIn | Facebook | Instagram | YouTube
MEDIA CONTACT: Chad Wandler
703-903-2446
Chad_Wandler@freddiemac.com
