Freddie Mac is prepping its next risk-sharing deal, according to presales from Fitch Ratings and Kroll Bond Ratings.
Totaling $590 million, STACR 2015-HQA2 is linked to the performance of a $17.1 billion pool of 74,432 residential mortgages. All the loans have 30-year terms and are fixed rate.
Risk-sharing deals are ways for Freddie and its twin Fannie Mae to offload the credit risk of mortgages they've acquired or guaranteed. In effect, they act as a reinsurance.
The highest rated tranches in the multi-tranche deal has an ‘A-’ from Fitch and an ‘A’ from Kroll.
The transaction is the second from Freddie that has actual loss exposure and loans with loan-to-value (LTV) ratios over 80%.
The weighted average (WA) LTV of the referenced mortgages is 91.5%, with none exceeding 95%.
Freddie’s first actual loss deal came out
The weighted average (WA) FICO credit score of the borrowers in the reference pool of STACR 2015-HQA2 is 749. The deal is Freddie’s 17th STACR.