The Federal Home Loan Mortgage Corporation (Freddie Mac) has decided to increases the planned size of its latest Structured Agency Credit Risk (STACR) offering due to investor demand.
Freddie Mac has upsized the STACR 2020-DNA4 offering to nearly $1.1 billion, making it the third STACR offering to be increased since March.
STACR, alongside Agency Credit Insurance Structure (ACIS), make up Freddie Mac’s credit risk transfer (CRT) program, through which it transfers mortgage risk to the private re/insurance market.
“Freddie Mac’s CRT offerings continue to attract investors confident in our ability to do the hard work of mitigating risk day-in and day-out,” said Christian Valencia, Vice President for Single-Family CRT.
“We remain committed to our role as the largest ongoing programmatic issuer of this class of securities—a class that we’re proud to have pioneered.”
STACR REMIC 2020-DNA4 is Freddie Mac’s fourth securities transaction of the year covering single-family loans with low loan-to-value (LTV) ratios between 61% and 80%.
Since 2013, Freddie Mac has transferred a portion of credit risk on approximately $1.7 trillion in unpaid principal balance (UPB) on single-family mortgages.
