FREDDIE MAC ANNOUNCES FIRST MULTIFAMILY CREDIT RISK TRANSFER OFFERING USING (RE)INSURANCE

摘要

Freddie Mac has created a Multifamily Credit Insurance Pool (MCIP) offering and closed on the first transaction under that offering. In MCIP transactions, Freddie Mac enters into long-term credit insurance contracts covering credit losses from existing multifamily loans in the company's portfolio or bonds that Freddie Mac fully guarantees. The structure transfers a percentage of credit risk to reinsurers, helping reduce Freddie Mac's need to hold capital for the underlying loans in the pool.