Freddie Mac Prices Approximately $284.2 Million SLST Securitization

Core Viewpoint - Freddie Mac has announced the pricing of its Seasoned Loans Structured Transaction Trust (SLST) Series 2025-1, which involves a securitization of approximately $284.2 million backed by seasoned residential mortgage loans [1][2]. Group 1: Transaction Details - The transaction comprises approximately $262.9 million in guaranteed senior certificates and approximately $21.3 million in non-guaranteed subordinate certificates, with the subordinate certificates auctioned on May 19, 2025 [2]. - The expected settlement date for the transaction is May 28, 2025 [2]. Group 2: Underlying Collateral - The collateral backing the certificates consists of 1,891 seasoned loans, including fixed, adjustable, and step-rate loans, with none of the loans being more than 150 days delinquent as of the cut-off date [3]. - The loans include both modified loans to assist borrowers at risk of foreclosure and loans that were never modified [3]. - Select Portfolio Servicing, Inc. will service the loans post-closing [3]. Group 3: Advisory and Management - Advisors for this transaction include BofA Securities, Inc. and Wells Fargo Securities, LLC as co-lead managers, along with Citigroup Global Markets Inc., Nomura Securities International, Inc., Academy Securities, Inc., and StoneX Financial Inc. as co-managers [4]. Group 4: Freddie Mac's Strategy - Freddie Mac's seasoned loan offerings aim to reduce less-liquid assets in its mortgage-related investments portfolio through economically sensible transactions, including sales of Non-Performing Loans (NPLs) and securitizations of re-performing loans (RPLs) [5]. - Since 2011, Freddie Mac has sold approximately $10.4 billion of NPLs and securitized about $80.3 billion of RPLs, which includes $30.4 billion of fully guaranteed MBS, $36.9 billion through the Seasoned Credit Risk Transfer (SCRT) program, and $13.0 billion through the SLST program [5].