Freddie Mac Prices $ 317 Million in Multi-Family Structured Credit Risk Notes
MCLEAN, Virginia, November 22, 2021 (GLOBE NEWSWIRE) – Freddie mac (OTCQB: FMCC) recently priced a new offering of Multi-Family Structured Credit Risk Notes (MSCR), Series 2021-MN3. The MSCR program (pronounced M-SCORE) is designed to reduce Freddie Mac’s exposure to mortgage credit risk and strengthen the company’s mission of supporting quality, affordable rental housing. MSCR transactions transfer to private investors a portion of the credit risk on qualifying multi-family mortgages backed by certain fully secured securities issued by Freddie Mac through its Certificate of Participation program. The approximately $ 317 million in MSCR remarks were assessed on November 18, 2021.
MSCR Notes are unsecured and unsecured mezzanine categories issued by a trust. Freddie Mac fully owns the senior loss risk class AH and the first loss class B-2H in the capital structure, as well as part of the risk in the tranches of classes M-1, M-2 and B -1.
Pricing for MSCR Notes Series 2021-MN3:
|To classify||Capital / Notional amount
|Improvement of initial credit||Weighted average life
|M-1||$ 79,332||5.25||%||4.49||Average SOFR 30 days||230||$ 100.00|
|M-1H *||$ 4,176||5.25||%||Vertical reference range not available|
|M-2||$ 171,886||2.00||%||8.86||Average SOFR 30 days||400||$ 100.00|
|M-2H *||$ 9,048||2.00||%||Vertical reference range not available|
|B-1||$ 66,110||0.75||%||12.38||Average SOFR 30 days||685||$ 100.00|
|B-1H *||$ 3,480||0.75||%||Vertical reference range not available|
|B-2H *||$ 41,754||0||%||Reference tranche not offered|
* Each benchmark tranche represents the 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-MN3 benchmark pool, which consists of 270 multi-family loans backed by multi-family PCs issued between December 2020 and October 2021 with a balance of approximate outstanding principal of $ 5.5. billion. The loans meet Freddie Mac’s multi-family underwriting, internal fraud prevention and quality control standards.
Co-Leaders and Associate Bookkeepers: BofA Securities, Inc. and Goldman Sachs & Co. LLC
Co-managers: Morgan Stanley & Co. LLC, Samuel A. Ramirez & Company, Inc. and Wells Fargo Securities, LLC
This announcement does not constitute an offer to sell any Freddie Mac securities. Offers for any given security are only made through the applicable offering circulars and related supplements, which incorporate Freddie Mac’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, filed with the Securities and Exchange Commission (SEC) on February 11. 2021; all other reports filed by Freddie Mac with the SEC in accordance with Section 13 (a) of the Securities Exchange Act of 1934 (Exchange Act) since December 31, 2020, excluding any information “provided” to the SEC on Form 8-K; and all documents that Freddie Mac files with the SEC in accordance with Sections 13 (a), 13 (c) or 14 of the Exchange Act, excluding any information “provided” to the SEC on Form 8- K.
Freddie Mac’s press releases sometimes contain forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, some of which are beyond the control of the company. Management’s expectations for the future of the Company necessarily involve a number of assumptions, judgments and estimates, and various factors could cause actual results to differ materially from the expectations expressed in these forward-looking statements and ‘others. These assumptions, judgments, estimates and factors are discussed in the company’s annual report on Form 10-K for the year ended December 31, 2020, and its reports on Forms 10-Q and 8-K, which are available. on the Investor Relations website. company website page at www.FreddieMac.com/investisseurs and the SEC website at www.sec.gov. The company makes no commitment to update any forward-looking statements it makes to reflect events or circumstances occurring after the date of this press release. The Multi-Family Investors section of the company’s website at https://mf.freddiemac.com/investors/ will also be updated, from time to time, with information on significant developments or other events that may be of importance to investors, and we encourage investors to regularly access this website for such updated information.
The financial and other information contained in the documents accessible on this page are only valid as of the date of these documents. The information could be out of date and no longer accurate. Freddie Mac assumes no obligation, and disclaims any duty, to update the information contained in these documents.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our inception by Congress in 1970, we’ve made housing more accessible and affordable for buyers and renters in communities across the country. We are building a better housing finance system for buyers, tenants, lenders and taxpayers. Learn more about FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.
MEDIA CONTACT: Michael Morosi
INVESTOR CONTACTS: Robert Koontz
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