Freddie Mac announced today that it has obtained new insurance policies under its successful Agency Credit Insurance Structure (ACIS) program. Through ACIS, Freddie Mac obtains insurance policies that transfer a portion of the credit risk associated with its Structured Agency Credit Risk (STACR) debt note reference pools to insurance and reinsurance companies around the globe.
This new transaction provides credit loss protection up to a combined maximum limit of approximately $336 million of losses on single-family loans and transfers much of the remaining credit risk associated with the second STACR debt issuance this year, STACR 2016-HQA1.
“We are very pleased about the continued partnership Freddie Mac has developed with the reinsurance market. This market has proved to be a durable partner for credit risk transfer,” Kevin Palmer, senior vice president of single-family credit risk transfer for Freddie Mac, said in a statement.
Freddie Mac has placed approximately $4.3 billion in insurance coverage through 16 ACIS transactions since the program’s inception in 2013.