Freddie Mac Whole Loan Securities (WLS) is a fully collateralized, non-synthetic issuance of guaranteed senior and non-guaranteed subordinated certificates. WLS is a credit risk transfer securitization backed by single-family mortgages purchased by Freddie Mac. Principal and interest payments on the underlying mortgage loans, whether received from borrowers or advanced by Freddie Mac as Master Servicer, provide the funds for distributions of principal and interest to investors and payment of certain expenses of the WLS trust. Additionally, Freddie Mac, in its role as Guarantor, will guarantee timely interest and ultimate principal payments to the senior certificates. Investors in non-guaranteed, subordinate certificates may not receive full payments of either principal or interest on the certificates as a result of realized losses on the mortgage loans in the WLS trust.