FMCC - Freddie Mac Prices Approximately $309.9 Million SLST Securitization | Benzinga
MCLEAN, Va., Oct. 18, 2023 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB:FMCC) today announced the pricing of the Freddie Mac Seasoned Loans Structured Transaction Trust (SLST) Series 2023-1, a securitization of approximately $309.9 million including both guaranteed senior and non-guaranteed subordinate securities backed by a pool of seasoned residential mortgage loans. The SLST 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.
The transaction includes approximately $286.7 million in guaranteed senior certificates and approximately $23.2 million in non-guaranteed subordinate certificates. The right to purchase the subordinate certificates was awarded on October 16 via an auction. The transaction is expected to settle on October 26, 2023.
The underlying collateral backing the certificates consists of 2,094 fixed-, adjustable-, and step-rate seasoned loans, and includes both loans modified to assist borrowers at risk of foreclosure and loans that were never modified. As of the Cutoff Date, none of the loans are more than 150 days delinquent. The loans are currently serviced by Specialized Loan Servicing, LLC and NewRez LLC d/b/a Shellpoint Mortgage Servicing.
Advisors to this transaction are BofA Securities, Inc., and Citigroup Global Markets Inc. as co-lead managers and joint bookrunners, and Nomura Securities International, Inc. and R. Seelaus & Co., LLC (a woman-owned business) as the ...