Freddie Mac said Monday it has obtained two new insurance policies under its Agency Credit Insurance Structure (ACIS) program.
They provide a combined maximum limit of up to approximately $516 million of losses on single-family loans and transfer a substantial portion of the remaining credit risk on this year's first two Structured Agency Credit Risk (STACR) debt issuances, STACR 2017-DNA1 and STACR 2017-HQA1.
All four transactions transferred a significant portion of mortgage credit risk on approximately $64 billion of unpaid principal balance on single-family mortgages.
Gina Subramonian Healy, vice president of credit risk transfer at Freddie Mac, said that significant enhancements to ACIS have broadened the investor base. Strong interest and demand are making ACIS a leading form of credit risk transfer in the market," she said in a press release.
Since the program's inception in 2013, Freddie Mac has placed over $6.7 billion in insurance coverage through 26 ACIS transactions.
The company has over 200 investors across its three major risk transfer offerings, STACR, ACIS and Whole Loan Securities. Since 2013, the company has transferred a significant portion of credit risk on approximately $666 billion of unpaid principal balance on single-family mortgages.