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Freddie Mac Announces Settlement of Seasoned Credit Risk Transfer Offering 

May 6, 2017

Brena Swanson, Housing Wire

Freddie Mac announced on Wednesday the settlement of its second Seasoned Credit Risk Transfer (SCRT) offering, shifting even more credit risk to investors as part of a plan to reduce the overall risk of the government-sponsored enterprises.

The settlement also follows a greater initiative to reduce the risk for American taxpayers.

The credit risk transfer is made up of a rated, securitization of approximately $1.12 billion of both guaranteed senior and unguaranteed subordinate securities.

Additionally, the collateral backing the certificates are 4,361 fixed- and step-rate modified seasoned loans. These loans were modified to assist borrowers who were at risk of foreclosure to help them keep their homes and have all been performing for at least 12 months as of issuance, the announcement stated.

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