GSE recognized for decreasing credit risk for borrowers while providing opportunities for investors
Freddie Mac has been named “Issuer of the Year” by Global Capital, an international capital markets news and data service.
The mortgage giant’s Single-Family Credit Risk Transfer (CRT) STACR and its Multifamily K-Deal securities were recognized in the residential (RMBS) and commercial (CMBS) mortgage-backed securities categories, respectively.
Freddie Mac first launched its STACR (Structured Agency Credit Risk) notes as part of its strategy to transfer a portion of the risk of losses away from taxpayers to private investors who purchase the unguaranteed subordinate bonds. The firm claims it has transferred credit risk on more than $2 trillion in single-family mortgages through the CRT program.
Freddie Mac Multifamily has also issued $515 billion in securities since the inception of its CMBS model in 2009 through the end of 2020. Freddie Mac’s flagship K-Deals represent $485 billion of the overall issuance of multifamily securities.
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“The RMBS Issuer of the Year Award acknowledges Freddie Mac’s ongoing commitment to the credit risk transfer asset class,” said Mike Reynolds, vice president of single-family CRT at Freddie Mac. “Through CRT, Freddie Mac helps ensure a better housing finance system for homebuyers while decreasing risk and providing unique opportunities for investors.”
“We’re very proud to be named CMBS Issuer of the Year,” said Robert Koontz, senior vice president of multifamily capital markets at Freddie Mac. “This award recognizes our effort to make home possible for low- and moderate-income Americans while providing industry-leading commercial mortgage-backed securities for investors seeking opportunity in the US housing finance sector.”
