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Freddie Mac offloads $500 million in credit risk to insurers 

October 27, 2015

Ben Lane, Housing Wire

Freddie Mac announced Monday that it obtained its largest insurance policy to date designed to cover much of the remaining credit risk associated with one of its Structured Agency Credit Risk transactions from earlier this year.

Freddie Mac obtained the insurance policy under its Agency Credit Insurance Structure, which is intended to attract private capital from non-mortgage guaranty insurers and reinsurers.

The new ACIS policy transfers much of the remaining credit risk associated with Freddie Mac’s second actual loss STACR offering, June’s STACR Series 2015-DNA2, to insurance and reinsurance companies around the globe.

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