Freddie Mac’s CRT Program Receives Over $800 Million in Credit Protection

Freddie Mac announced that its single-family and multifamily Credit Risk Transfer (CRT) programs have obtained approximately $833 million of credit protection on more than $50 billion of unpaid principal balance (UPB) of mortgages. Announced.

The transaction was brokered by leading global professional services firm Aon plc and in 2022 sub-brokered by Certified Minority Enterprise (MBE) Protecdiv.

Freddie Mac’s CRT program transfers credit risk from US taxpayers to global private capital through securities and (re)insurance policies, providing stability, liquidity and affordability to the US housing market.

Jeff Shue, Senior Director of Single-Family CRT, said: ”

In 2022, Freddie Mac’s Single Family CRT ACIS (Agency Credit Insurance Structure) program completed three (re)insurance transactions with Aon as broker and Protecdiv as sub-broker.

These include ACIS 2022-SPH3, completed in November 2022, and ACIS 2022-SPL6 and ACIS 2022-SPL7, completed in December 2022. The combined deal provided his $634 million in credit protection against his $44.6 billion UPB loan.

In the same month, Freddie Mac completed MCIP 2022-R5, an insurance-based credit risk sharing transaction for the Multifamily Credit Insurance Pool (MCIP). The transaction covers $198.9 million in his UPB’s reference pool of $5.5 billion, with Aon as the broker and Protecdiv as the broker. subbroker.

Robert Koontz, senior vice president of multifamily capital markets at Freddie Mac, said: We hope their participation in our deal will help us bring more minority-led businesses into the space.Freddie Mac is committed to supporting equity across the housing industry . ”

Joe Monahan, Global Growth Leader for Aon Reinsurance Solutions and CEO of Aon Public Sector Partnerships, said:

“We are thrilled to be working with Protecdiv as we continue to deliver on Freddie Mac and Aon’s shared commitment to inclusion and diversity, innovation and increasing impact.”

Kael Coleman, Founder and CEO of Protecdiv, added:

“Protecdiv was built to meet the supplier diversity goals of large US corporations and public sector institutions. Through our proud collaboration with Aon, we now have , and has the scale to serve large enterprises.”