OVERVIEW Product Summary

Developed in 2013, Structured Agency Credit Risk (STACR®) was the first GSE credit risk transfer program. STACR reduces taxpayer credit exposure through debt notes – unsecured and non-guaranteed bonds – whose principal payments are determined by the delinquency and principal payment performance of a STACR reference pool consisting of recently acquired single-family mortgages from a specified period. Freddie Mac makes periodic payments of principal and interest on the notes, and Freddie Mac benefits from the credit risk transfer through a reduction in note balances for defined credit events in the reference pool. Depending on the specific STACR issuance, reductions of the note balances may be based on a fixed severity or an actual loss model.

STACR transactions will no longer be issued as Freddie Mac debt, but will be issued as STACR Trust and will be issued by a third-party trust. Please see STACR Trust for more information.


  • One of the industry’s largest and most diversified reference pools
  • Senior and junior mezzanine notes are not guaranteed by Freddie Mac and are sold to investors
  • The notes are paid monthly principal, similar to a senior/subordinate private label residential mortgage backed securities structure
  • Losses based on credit events in the reference pool are allocated to the STACR notes in reverse order of seniority and reduce the balance of such notes
  • Freddie Mac holds the senior risk, which is unfunded and not issued
  • STACR notes have a 10-year final maturity for fixed severity transactions and 12.5-year final for actual loss transactions
  • Freddie Mac may retain all or a portion of the first-loss piece


Funding Period
Total Bond Issuance
Bond Issuance
Initial Credit Enhancement

STACR Legal Documents

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credit_securities@freddiemac.com(866) 903-2767