Freddie Mac prices $707M securitization of re-performing loans

Freddie Mac (FMCC) announced the pricing of its second Seasoned Credit Risk Transfer Trust offering of 2025-a securitization of approximately $707M including both guaranteed senior and non-guaranteed subordinate securities backed by a pool of seasoned re-performing loans. The SCRT program is a fundamental part of Freddie Mac’s seasoned loan offerings which reduce less-liquid assets in its mortgage-related investments portfolio and shed credit and market risk via economically reasonable transactions. Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2025-2 includes approximately $673M in guaranteed senior certificates and $34M in non-guaranteed mezzanine and subordinate certificates. The transaction is expected to settle on September 12, 2025. The underlying collateral consists of 4,002 seasoned fixed-, step-, and adjustable-rate RPLs, and includes both loans that were modified to assist borrowers at risk of foreclosure and loans that were never modified. As of the Cut-Off Date, all of the Mortgage Loans are either current or no more than 30 days delinquent under the MBA Method. On and after closing, the Mortgage Loans will be serviced by Newrez LLC d/b/a Shellpoint Mortgage Servicing and Select Portfolio Servicing, Inc. and will be serviced in accordance with requirements that, in the event of default, prioritize borrower retention options and promote neighborhood stability. Advisors to this transaction are Wells Fargo Securities and Citigroup Global Markets, as co-lead managers and joint bookrunners, and BofA Securities, Nomura Securities International, Oppenheimer & Co., and R. Seelaus & Co. as co-managers.