OVERVIEW Freddie Mac Single-Family CRT Securities

Freddie Mac structures credit risk into fixed-income securities, thereby offering institutional investors innovative opportunities to gain exposure to the U.S. residential housing market. Sharing credit risk with private capital markets allows Freddie Mac to reduce credit exposure of U.S. taxpayers.

STACR
ISSUANCE TYPE REMIC Notes Trust Notes Debt Notes
PRIMARY INVESTORS Money Managers, Hedge Funds, REITs, Sovereign Funds, Insurance Companies
BOND STRUCTURE Multi-Class: Investment Grade, Non-Investment Grade, Not Rated
STACR
Issuance Type
Primary Investors
Offerings

Offerings

STACR (Structured Agency Credit Risk)

Launched in 2013, STACR® is the first GSE Single-Family CRT program. STACR reduces U.S. taxpayer credit exposure through the issuance of non-guaranteed notes to global private investors across a multi-tranche structure. Interest and principal are paid to noteholders on a monthly basis. Principal payments exclude credit or modification losses within the underlying reference pools consisting of single-family mortgages.

STACR SPI (Securitized Participation Interests)

STACR SPISM is a form of credit risk transfer in which fully-collateralized, non-guaranteed certificates are offered. Participation interests (PC Participation Interests and Credit Participation Interests) are created from recently originated mortgage loans acquired by Freddie Mac through its cash window. The PC Participation Interests are used to issue Gold PCs and the Credit Participation Interests are deposited into the SPI trust, which then issues non-guaranteed SPI certificates to credit investors. STACR SPI replaces an older form of fully-collateralized cash CRT securitization called Whole Loan Securities (WLS). The last SPI offering occurred before UMBS (Universal Mortgage Back Securities) took effect.

OVERVIEW Freddie Mac Single-Family (Re)insurance Contracts

Freddie Mac programmatically issues (re)insurance contracts that provide unique opportunities for global (re)insurance companies to gain broad exposure to the creditworthiness of the U.S. residential housing market. The contracts transfer a portion of credit risk away from U.S. taxpayers on CRT-eligible mortgages that Freddie Mac acquires.

ACIS AFRM IMAGIN
INSURANCE TYPE Aggregate Excess of Loss Credit (Re)insurance Mortgage Insurance
PRIMARY PARTICIPANTS (Re)insurance Companies (Re)insurance/Mortgage Insurance Companies
POLICY STRUCTURE Multi-Class
(Re)insurance Policy
Multi-Class Forward
(Re)insurance Policy
Insured-Placed Mortgage Insurance
ACIS®
Insurance Type
Primary Investors
Policy Structure

Offerings

ACIS (Agency Credit Insurance Structure)

Introduced in 2013, ACIS® is Freddie Mac’s flagship (re)insurance program. ACIS offerings consist of insurance policies issued by or ceded to global (re)insurance companies that transfer credit risk on underlying single-family mortgages. ACIS transactions offer multiple tranches to accommodate various risk appetites. Monthly premiums are paid to (re)insurers based on their tranche participation in exchange for claim coverage on their portion of a reference pool.

AFRM (ACIS Forward Risk Mitigation)

AFRMSM gives (re)insurance companies exposure to single-family mortgage credit risk on a forward basis. AFRM attaches insurance coverage on eligible mortgage loans as soon as their purchases are funded by Freddie Mac, rather than after months of seasoning. AFRM leverages most of the structural characteristics of ACIS, including multiple tranches, principal and loss event waterfalls, partial collateralization and call options. AFRM allows for participation from diversified (re)insurers as well as traditional mortgage insurance affiliates. It replaced a previous MI-exclusive CRT offering known as Deep MI CRT.

IMAGIN (Integrated Mortgage Insurance)

Freddie Mac supports low-down-payment lending through its exclusive offering, Integrated Mortgage InsuranceSM (IMAGINSM). IMAGIN is an alternative form of front-end mortgage insurance in which Freddie Mac obtains the mortgage insurance coverage simultaneously with loan delivery. IMAGIN is an additional option beyond traditional Borrower-Paid MI (BPMI) and Lender-Paid MI (LPMI).

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credit_securities@freddiemac.com(866) 903-2767