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Freddie Mac Prices First-of-its-Kind $276 Million in Multifamily Structured Credit Risk Notes

Written by Customer Service on . Posted in Public Companies.

MCLEAN, Va., Jan. 14, 2021 (GLOBE NEWSWIRE) — Freddie Mac (OTCQB: FMCC) recently priced a new offering of Multifamily Structured Credit Risk (MSCR) Notes, Series 2021-MN1. The MSCR (pronounced M-SCORE) program is designed to transfer to private investors a portion of the credit risk on eligible multifamily mortgage loans backing certain fully guaranteed securities issued by Freddie Mac, thereby reducing U.S. taxpayers’ exposure to mortgage credit risk. The approximately $276 million in MSCR Notes were priced on January 12, 2021.
The MSCR Notes are unsecured and unguaranteed mezzanine classes issued by a trust. Freddie Mac holds in its entirety the senior loss risk A-H class and the first loss B-2H class in the capital structure, along with retaining a portion of the risk in the class M-1, M-2 and B-1 tranches.“The growth in our single pass through structure, Multifamily Mortgage Participation Certificates, has created a new opportunity to transfer credit risk,” said Robert Koontz, Senior Vice President of Multifamily Capital Markets. “The MSCR 2021-MN1 transaction is an example of Freddie Mac’s dedication to engaging private capital to reduce taxpayers’ exposure to credit risk.”MSCR Notes Series 2021-MN1 Pricing:*Each reference tranche represents risk retained by Freddie Mac.The amount of periodic principal and ultimate principal paid by the trust is determined by the performance of the MSCR 2021-MN1 reference pool, which consists of approximately 302 multifamily mortgage loans originated between 2013 and 2020 with an approximate unpaid principal balance of $4.9 billion. The loans adhere to Freddie Mac’s multifamily underwriting, internal fraud prevention and quality control standards.Details:Co-Lead Managers and Joint Bookrunners: BofA Securities, Inc. and Wells Fargo Securities, LLCThis announcement is not an offer to sell any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission (SEC) on February 13, 2020; all other reports Freddie Mac filed with the SEC pursuant to Section 13(a) of the Securities Exchange Act of 1934 (Exchange Act) since December 31, 2019, excluding any information “furnished” to the SEC on Form 8-K; and all documents that Freddie Mac files with the SEC pursuant to Sections 13(a), 13(c) or 14 of the Exchange Act, excluding any information “furnished” to the SEC on Form 8-K.The financial and other information contained in the documents that may be accessed on this page speaks only as of the date of those documents. The information could be out of date and no longer accurate. Freddie Mac undertakes no obligation, and disclaims any duty, to update any of the information in those documents.Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.
MEDIA CONTACT:
Michael Morosi
(703) 918-5851
Michael_Morosi@FreddieMac.com

INVESTOR CONTACTS:
Robert Koontz
571-382-4082
Amanda Nunnink
312-407-7510

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