MCLEAN, Va., Oct. 24, 2024 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today announced the pricing of the Freddie Mac Seasoned Loans Structured Transaction Trust (SLST) Series 2024-2, a securitization of approximately $272.2 million including both guaranteed senior and non-guaranteed subordinate securities backed by a pool of seasoned residential mortgage loans. The SLST program is a fundamental part of Freddie Mac's seasoned loan offerings which reduce less-liquid assets in its mortgage-related investments portfolio and shed credit and market risk via economically reasonable transactions.

The transaction includes approximately $245.0 million in guaranteed senior certificates and approximately $27.2 million in non-guaranteed subordinate certificates. The subordinate certificates were auctioned and awarded on October 24. The transaction is expected to settle on October 30, 2024.

The underlying collateral backing the certificates consists of 1,694 fixed-, adjustable-, and step-rate seasoned loans, and includes both loans modified to assist borrowers at risk of foreclosure and loans that were never modified. As of the cut-off date, none of the loans are more than 150 days delinquent. On and after closing the loans will be serviced by Select Portfolio Servicing Inc.

Advisors to this transaction are Citigroup Global Markets Inc. and Nomura Securities International, Inc. as co-lead managers and joint bookrunners, and BofA Securities, Inc., Mizuho Securities USA LLC and Academy Securities, Inc. (a veteran-owned business) as the co-managers.

Freddie Mac’s seasoned loan offerings focus on reducing less-liquid assets in the company’s mortgage-related investments portfolio in an economically sensible way. This includes sales of Non-Performing Loans (NPLs), securitizations of re-performing loans (RPLs) and structured RPL transactions. Since 2011, Freddie Mac has sold almost $10.3 billion of NPLs and securitized approximately $79.3 billion of RPLs consisting of $30.4 billion of fully guaranteed MBS, $36.2 billion through the Seasoned Credit Risk Transfer (SCRT) program, and $12.7 billion through the SLST program. Requirements guiding the servicing of these transactions are focused on improving borrower outcomes and stabilizing communities. Additional information about Freddie Mac’s seasoned loan offerings is available at: https://www.freddiemac.com/seasonedloanofferings/.

This announcement is not an offer to sell any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (SEC) on February 14, 2024; all other reports Freddie Mac filed with the SEC pursuant to Section 13(a) of the Securities Exchange Act of 1934 (Exchange Act) since December 31, 2023, excluding any information "furnished" to the SEC on Form 8-K; and all documents that Freddie Mac files with the SEC pursuant to Sections 13(a), 13(c) or 14 of the Exchange Act, excluding any information “furnished” to the SEC on Form 8-K.