Market Overview

Freddie Mac Announces Second RPL Structured Sale of SLST Program in 2017


Freddie Mac Announces Second RPL Structured Sale of SLST Program in 2017

Freddie Mac Announces Second RPL Structured Sale of SLST Program in 2017

$983 Million Transaction Largest SLST to Date

MCLEAN, VA--(Marketwired - Aug 29, 2017) -  Freddie Mac (OTCQB: FMCC) today announced an approximate $983 million structured sale of a pool of seasoned re-performing loans from its mortgage investments portfolio. The pool is comprised of loans with step-rate modifications (primarily HAMP) and loans modified under GSE proprietary modifications. The pool consists of re-performing and moderately delinquent loans. The loans are currently being serviced by Nationstar Mortgage LLC.

This transaction will involve a two-step process. The initial step involves the sale of the loans via a competitive bidding process subject to a securitization term sheet. The sale will be executed on the basis of economics, subject to meeting Freddie Mac's internal reserve levels. The second step will require the purchaser of the loans to securitize the loans and retain the first loss subordinate tranche. Freddie Mac will guarantee and acquire the guaranteed security issued from such securitization.

A key requirement of this transaction is that the buyer of the loans, and therefore the subordinate tranche, be an investor with substantial experience in managing both performing and moderately delinquent mortgage loans as well as securitizing mortgage loans.

Advisors to Freddie Mac on this transaction are Credit Suisse Securities (USA) LLC and The Williams Capital Group, L.P., a minority-owned business.

To date, Freddie Mac has sold $7 billion in nonperforming loans (NPLs) and securitized $31 billion in re-performing loans (RPLs), of which $26 billion are in PCs and $5 billion are in structured offerings. Additional information about the company's seasoned loan offerings is at

This announcement is not an offer to sell any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac's Annual Report on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission (SEC) on February 16, 2017; all other reports Freddie Mac filed with the SEC pursuant to Section 13(a) of the Securities Exchange Act of 1934 (Exchange Act) since December 31, 2016, excluding any information "furnished" to the SEC on Form 8-K; and all documents that Freddie Mac files with the SEC pursuant to Sections 13(a), 13(c) or 14 of the Exchange Act, excluding any information "furnished" to the SEC on Form 8-K.

Freddie Mac's press releases sometimes contain forward-looking statements. A description of factors that could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements can be found in the company's Annual Report on Form 10-K for the year ended December 31, 2016, and its reports on Form 10-Q and Form 8-K, filed with the SEC and available on the Investor Relations page of the company's Web site at and the SEC's website.

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, Twitter @FreddieMac and Freddie Mac's blog


Lisa Gagnon


View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at