Freddie Mac has priced $263.5 million in structured pass-through certificates securitized participation interests, which are backed by participation interests in 25- to- 30-year fixed-rate mortgage loans with an aggregate principal balance of about $6.5 billion.
The securities include the retention of credit risk on those loans subsequently refinanced under Freddie Mac's Enhanced Relief Refinance Program. In addition, the securities are distributed across three classes of certificates.
Freddie Mac will retain a 5% interest in each of the three classes, maintaining alignment of interests with credit investors and complying with EU risk retention rules. The M-2 and B classes are MACR classes, formed by M-2A/M-2B and B-1/B-2 respectively.
BofA Merrill Lynch and Wells Fargo Securities LLC are co-lead managers and joint book runners.
