Freddie Mac hit the $1 trillion mark on credit risk sharing for single-family mortgage loans with its pricing of $1.05 billion Structured Agency Credit Risk 2018-DNA2 Notes.
This marks the second lower LTV deal of the year for Freddie Mac.
"We have transferred a significant portion of mortgage credit risk to private investors on more than $1 trillion of single-family mortgages and we're very proud of reaching this important milestone in our credit risk transfer program," Mike Reynolds, Freddie Mac's vice president of credit risk transfer, said in a press release.
"Our innovation and leadership in CRT is building a better housing finance system for homebuyers and taxpayers, and providing global investors a growing number of opportunities to invest in the U.S. residential housing market," he added.
STACR 2018-DNA2 has a reference pool of single-family mortgages with an unpaid principal balance of about $49.3 billion, according to the company. The reference pool consists of loans with LTVs between 60% and 80%.
Freddie Mac has been on the road to the $1 trillion mark for credit risk transfers since 2013. It has grown its investor base to over 220 unique investors.
Almost exactly a year ago, the original UPB of single-family mortgage credit risk
Both government-sponsored enterprises generally share risk with the private market in the form of securities or insurance deals, but also have shared risk with larger lenders.