Freddie Mac's Latest Securitization: A $343 Million Milestone

Freddie Mac Announces $343.2 Million Securitization

Freddie Mac has unveiled its latest financial move with the pricing of the Freddie Mac Seasoned Loans Structured Transaction Trust (SLST) Series 2025-2. This transaction amounts to approximately $343.2 million and comprises both guaranteed senior and non-guaranteed subordinate securities derived from a pool of seasoned residential mortgage loans.

Details of the Transaction

The structure of this transaction includes around $308.8 million in guaranteed senior certificates alongside approximately $34.3 million in subordinate certificates. Auctioning for the subordinate certificates took place on October 24, 2025, with an anticipated settlement on October 30, 2025.

Composition of the Underlying Loans

Backing these securities are 1,985 seasoned loans that vary in type, including fixed-rate, adjustable-rate, and step-rate loans. Importantly, this group consists of loans that were modified to assist borrowers facing foreclosure risks, as well as loans that remained unmodified. Notably, there are no loans delinquent for more than 150 days as of the cut-off date.

Advisors and Partners Involved in the Transaction

This substantial transaction has seen collaboration from a range of prominent financial entities. Citigroup Global Markets Inc. and Nomura Securities International, Inc. have acted as co-lead managers and joint bookrunners, with additional involvement from Academy Securities, Inc., BofA Securities, Inc., Mizuho Securities USA LLC, and Wells Fargo Securities, LLC, serving as co-managers.

Freddie Mac's Commitment to Homeownership

Freddie Mac is dedicated to improving the housing market's liquidity, stability, and affordability. Since its inception in 1970, it has successfully assisted millions of families in purchasing, renting, or maintaining their homes. The company's seasoned loan offerings are a strategic approach to minimizing less-liquid assets within its mortgage-related investments portfolio. This not only facilitates effective risk management but also bolsters borrower outcomes and community stability.

Historical Context and Performance Metrics

Since 2011, Freddie Mac has achieved significant milestones, having sold around $10.7 billion of Non-Performing Loans (NPLs) and securitized approximately $81.3 billion of Re-Performing Loans (RPLs). The breakdown of these transactions includes $30.4 billion through fully guaranteed Mortgage-Backed Securities (MBS), $37.6 billion via the Seasoned Credit Risk Transfer (SCRT) program, and $13.3 billion through the SLST program.

Future Outlook and Market Positioning

Freddie Mac's role in the mortgage market is pivotal, serving as a reliable source for liquidity and enhanced stability. By continually innovating with offerings like the SLST program, the organization positions itself for ongoing influence and success in the housing finance sector.

Frequently Asked Questions

What is the Freddie Mac SLST Series 2025-2?

The Freddie Mac SLST Series 2025-2 is a securitization totaling approximately $343.2 million that includes guaranteed and subordinate securities backed by seasoned residential mortgage loans.

How many loans are included in this securitization?

This securitization includes 1,985 seasoned loans of various types, ensuring a diversified loan backing.

Who were the advisors for this transaction?

Citigroup Global Markets Inc. and Nomura Securities International, Inc. served as co-lead managers, with several other financial entities involved as co-managers.

What has been Freddie Mac's historical performance in NPLs?

Since 2011, Freddie Mac has sold approximately $10.7 billion in Non-Performing Loans and has securitized around $81.3 billion in Re-Performing Loans.

How does Freddie Mac support homeownership?

Freddie Mac contributes to revenue stability and affordable housing by assisting families in purchasing, renting, or retaining homes, enhancing accessibility within the housing market.

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