Freddie Mac Announces $2B+ Securitization of Reperforming Loans

first_img About Author: Mike Albanese Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Freddie Mac Announces $2B+ Securitization of Reperforming Loans Previous: Consolidation and the Value of Bank Debt Next: MQMR Hires Jeff Christensen Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post Share Save The Best Markets For Residential Property Investors 2 days ago avoiding foreclosure Freddie Mac RPL SCRT 2019-05-09 Mike Albanese Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / Freddie Mac Announces $2B+ Securitization of Reperforming Loans May 9, 2019 2,384 Views Mike Albanese is a reporter for DS News and MReport. He is a University of Alabama graduate with a degree in journalism and a minor in communications. He has worked for publications—both print and online—covering numerous beats. A Connecticut native, Albanese currently resides in Lewisville. center_img Subscribe Demand Propels Home Prices Upward 2 days ago Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, Foreclosure, Government, News, Secondary Market Demand Propels Home Prices Upward 2 days ago Freddie Mac announced its second Seasoned Credit Risk Transfer (SCRT) of 2019, offering a rate securitization of around $2.4 billion.The rate includes both senior and unguaranteed subordinate securities back by seasoned reperforming loans (RPLs).“The SCRT securitization program is a fundamental part of Freddie Mac’s seasoned loan offerings, which reduce less liquid assets in its mortgage-related investments portfolio and sheds credit and market risk via economically reasonable transactions,” the GSE stated in the release.According to the release, the most recent SCRT includes approximately $2.2 billion in guaranteed senior risk certificates and around $247 million in unguaranteed mezzanine and subordinated certificates.Freddie Mac expects the transaction to be settled on Wednesday, May 15.To assist borrowers who were at risk for foreclosure and help them remain in their homes, the underlying collateral consists of the modification of 12,406 fixed-and-step-rate, seasoned RPLs. Freddie Mac reported on its foreclosure prevention activity in its Q1 2019 financial update, and according to the Federal Housing Finance Agency, both Fannie Mae and Freddie Mac completed 13,589 foreclosure prevention actions in January. The GSE’s have completed more around 4.3 million foreclosure actions since the start of conservatorship in September 2008.The RPLs are serviced by Select Portfolio Servicing, Inc, with assistance from Citigroup Global Markets Inc. and Nomura Securities International, Bank of America, Merrill Lynch, BMO Capital Markets Corp., Credit Suisse Securities LLC, Wells Fargo Securities LLC and The Williams Capital Group, L.P.In 2019 Freddie Mac has sold $8 billion on non-performing loans and securitized more than $50 billion of RPLs.Freddie Mac reported an income of $1.7 billion in its financial update.“Our guarantee book of business over the prior year grew 5 percent, demonstrating our heightened competitiveness, and credit quality remains strong,” said Freddie Mac CEO Donald H. Layton. “We also delivered on our mission, making home possible for nearly 450,000 families. These results demonstrate how the transformed Freddie Mac today is a well-run financial institution that produces solid earnings, serves its customers, protects taxpayers and fulfills its mission.” The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: avoiding foreclosure Freddie Mac RPL SCRT The Week Ahead: Nearing the Forbearance Exit 2 days agolast_img

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