Freddie Mac’s first three risk-sharing transactions of 2015 are all insurance policies.
The three Agency Credit Insurance Structure (ACIS) transactions, which were all obtained last week, transfer much of the remaining risk on mortgages covered by three of the company’s flagship Structured Agency Credit Risk (STACR) deals executed in 2014.
The ACIS transactions provide up to a combined maximum limit of approximately $707 million of losses on pools of single-family loans acquired in 2013 and the first quarter of 2014.
"The three ACIS executions right out of the gate this year reinforces our commitment to programmatic and efficient transactions," said Kevin Palmer, vice president of Freddie Mac's single-family strategic credit costing and structuring.
"Combined with our ACIS transaction in December, we have now acquired more than $860 million in additional insurance coverage since our last STACR transactions in October 2014. Similar to previous deals, this transaction also includes new participants as we continue to mature and further expand our panel of counterparties."
Freddie Mac has now completed nine STACR debt note offerings and seven ACIS transactions since mid-2013, offloading a substantial portion of credit risk on more than $205 billion of unpaid principal balance in single-family mortgages.