Freddie Mac Prices Sixth STACR Offering

first_img in Daily Dose, Featured, News Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Freddie Mac Prices Sixth STACR Offering Credit Risk Sharing Freddie Mac STACR 2016-09-13 Kendall Baer Share Save Tagged with: Credit Risk Sharing Freddie Mac STACR Kendall Baer is a Baylor University graduate with a degree in news editorial journalism and a minor in marketing. She is fluent in both English and Italian, and studied abroad in Florence, Italy. Apart from her work as a journalist, she has also managed professional associations such as Association of Corporate Counsel, Commercial Real Estate Women, American Immigration Lawyers Association, and Project Management Institute for Association Management Consultants in Houston, Texas. Born and raised in Texas, Baer now works as the online editor for DS News. Related Articles Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Freddie Mac recently priced a $515 million Structured Agency Credit Risk (STACR) debt notes offering, according to a report from the GSE. This is reportedly the sixth one from Freddie Mac this year. The report states that through STACR, Freddie Mac transfers a significant portion of its mortgage credit risk on certain groups of loans to private investors.Pricing for STACR Series 2016-HQA3 includes M-1 class which is one-month LIBOR plus a spread of 80 basis points, M-2 class which is one month LIBOR plus a spread of 135 basis points, M-3 class which is one month LIBOR plus a spread of 385 basis points, and finally, B class which is one month LIBOR plus a spread of 900 basis points.Bank of America Merrill Lynch and Goldman, Sachs & Co. will serve as co-lead managers and joint bookrunners, according to the report.Freddie Mac states that with the STACR 2016-HQA3 offering of loans with LTVs ranging from 80 to 95 percent, 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 tranches, and the first loss Class B tranche.Additionally, STACR 2016-HQA3 has a reference pool of single-family mortgages with an unpaid principal balance of more than $15.7 billion. The reference pool consists of a subset of 30-year fixed-rate single-family mortgages acquired by Freddie Mac.The report states that Freddie Mac has led the market in introducing new credit risk-sharing initiatives with STACR, Agency Credit Insurance Structure (ACIS) and Whole Loan Securities (WLS(SM)), and was the first agency to market these types of credit risk transfer transactions. The company states that it has since grown its investor base to more than 200 unique investors, including insurers and reinsurers. Additionally, since 2013, the company has transferred a significant portion of credit risk on nearly $530 billion of UPB on single-family mortgagescenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / Freddie Mac Prices Sixth STACR Offering About Author: Kendall Baer The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago September 13, 2016 1,351 Views Previous: National Foreclosure Rates Back to Pre-Crisis Levels in July Next: New Tool Launched for REO Market The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribelast_img