Page 52 - September October 2018 Disruption Report Flip Book

FREDDIE MAC SEJPATN.U-AORCYT.20210818
Freddie Mac prices its final low LTV STACR transaction for 2018
On September 12, Freddie Mac announced the pricing of $820 million Structured Agency Credit Risk (STACR®) Trust 2018-DNA3, its third and final 60-80 loan-to-value (LTV) deal of the year. As with the previous two STACR transactions, the notes are issued by a trust rather than as Freddie Mac debt. Through its STACR offerings, Freddie Mac transfers a significant portion of its mortgage credit risk on certain groups of loans to private investors.
Freddie Mac rolled out multiple program enhancements for STACR 2018-DNA3:
• Extended the term from 12.5-year to 30-year legal maturity
• Introduced new credit enhanced B-2 class offerings
• Offered new MAC notes for M-2, B-1, and B-2 classes
“This low LTV STACR Trust transaction builds on the progress we have made throughout the year, featuring a number of enhancements designed to make it more attractive to our growing list of investors,” said Mike Reynolds, Freddie Mac’s vice president of credit risk transfer. “More importantly, it deepens our commitment to the credit-risk transfer market, and we look forward to announcing additional improvements to this flagship offering in the coming months.” (Press Release, Freddie Mac, 09/12/19)
Equifax is working with Freddie Mac to integrate its income verification tool with the GSE’s Loan Advisor
Equifax Inc. is working with Freddie Mac to fully automate the assessment of borrower income by integrating Equifax’s income verification tool, The Work Number, with Freddie Mac’s Loan Advisor asset assessment tool. Freddie Mac’s goal is to streamline the process for homebuyers to secure a mortgage, making the origination process easier and more efficient from point-of-sale through securitization.
Equifax’s Work Number database, containing more than 350 million payroll records, is the nation’s largest centralized repository of payroll data. Last year, Equifax made its income verification
data available to Freddie Mac, as part of a limited release. Freddie Mac now plans to offer Work Number broadly to its clients in the coming months. (DailyDose, 10/25/18)
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