After offering its first risk-sharing deal that featured the actual loss position on loans with loan-to-value ratios ranging from 80% to 95% earlier this year, Freddie Mac is bringing another high LTV risk-sharing deal to market.

The government-sponsored enterprise announced Monday that it intends to bring another high LTV deal to market as part of its Structured Agency Credit Risk Series.

According to an announcement from Freddie Mac, the latest STACR deal is its eighth STACR offering this year and the last one of the year.

In its announcement, Freddie Mac said that the $590 million STACR 2015-HQA2 has a reference pool of single-family mortgages with an unpaid principal balance of more than $17 billion.

The reference pool consists of a subset of 30-year fixed-rate single-family mortgages acquired by Freddie Mac between December 1, 2014, and March 31, 2015, with LTVs from 80 to 95%, Freddie Mac said.

In the STACR 2015-HQA2 offering, Freddie Mac holds the senior loss risk in the capital structure and a portion of the risk in the Class M-1, M-2 and M-3, and the first loss Class B tranche.

Citigroup and Barclays will serve as co-lead managers and joint bookrunners. BNP Paribas, Bank of America Merrill Lynch, Cantor Fitzgerald and Nomura are co-managers. Loop Capital is a selling group member.

Freddie Mac’s first actual loss high-LTV risk-sharing deal was a $872 million offering.

STACR 2015-HQA1 was Freddie Mac’s third transaction where losses were to be allocated based on the actual losses realized on the related reference obligations instead of allocating losses using a fixed severity approach, and the first where the actual loss was offered on loans with high LTVs.

According to Mike Reynolds, Freddie Mac’s vice president of credit risk transfer, the deal was welcomed by the market.

“Our HQA offering is the first STACR offering after the summer break, and was well received by investors,” Reynolds said when the deal priced. “The STACR market continues to build momentum and attract new capital.”

Most Popular Articles

Millennials don’t trust lenders or the housing market – So how do we reach them?

One of the most defining characteristics of the Millennial generation’s experience with the financial and housing ecosystems is that of fear. HousingWire Columnist Kristin Messerli offers a social work-inspired approach to help housing professionals reach younger homebuyers.

Feb 12, 2020 By

Latest Articles

Equifax expects to pay out another $100 million for data breach

The Department of Justice says it knows who hacked Equifax and exposed the sensitive personal information of 148 million consumers, but that doesn’t mean the breach is behind Equifax quite yet.

Feb 14, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please