MCLEAN, Va., Aug. 01, 2018 (GLOBE NEWSWIRE) — Freddie Mac (OTCQB:FMCC) announced today that it has obtained a new insurance policy under its Agency Credit Insurance Structure (ACIS®) program. The policy, which has attracted a record number of participants, provides a maximum limit of up to $356 million of losses on a $49.3 billion reference pool. Through ACIS 2018-DNA2, a substantial portion of the remaining credit risk on STACR 2018-DNA2 is being transferred.
“Our flagship ACIS program continues to attract significant investor interest. In fact, we had a record number of participants on this transaction,” said Gina Healy, vice president of credit risk transfer. “With the recent additions of ACIS Forward Risk Mitigation and ACIS ARMR, (re)insurers worldwide have more opportunities than ever to invest in the U.S. housing market. We continue work to enhance our existing ACIS offerings and explore new ways to transfer mortgage credit risk to the private market, especially through front-end solutions.”
The new ACIS policy consists of fixed-rate, single-family mortgages with an original term of 241 to 360 months that were acquired by Freddie Mac (i) between August 1, 2017, and Nov. 30, 2017; or (ii) between November 1, 2016 and March 31, 2017. It also includes fixed-rate, single-family mortgages where the location of the related mortgaged property in a county declared by FEMA to be a major disaster area, and in which FEMA had authorized individual assistance to homeowners in such county as a result of Hurricanes Harvey or Irma.
Freddie Mac has placed nearly $10.3 billion in insurance coverage through 38 ACIS transactions, which represents a significant portion of the $38 billion — and growing — cumulative credit loss exposure Freddie Mac has laid off to date. Since 2013, the company has transferred a portion of credit risk on more than $1 trillion of UPB on single-family mortgages and has grown its investor base to more than 220 unique investors, including insurers and reinsurers.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.
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