Freddie Mac Prices Approximately $343.2 Million SLST Securitization

Core Viewpoint - Freddie Mac has announced the pricing of the Seasoned Loans Structured Transaction Trust (SLST) Series 2025-2, which involves a securitization of approximately $343.2 million backed by seasoned residential mortgage loans [1][2]. Group 1: Transaction Details - The transaction comprises approximately $308.8 million in guaranteed senior certificates and about $34.3 million in non-guaranteed subordinate certificates, with the subordinate certificates auctioned on October 24, 2025 [2]. - The expected settlement date for the transaction is October 30, 2025 [2]. Group 2: Underlying Collateral - The collateral backing the certificates consists of 1,985 seasoned loans, including fixed, adjustable, and step-rate loans, with none being more than 150 days delinquent as of the cut-off date [3]. - The loans include both modified loans aimed at assisting borrowers at risk of foreclosure and loans that were never modified [3]. Group 3: Advisory and Management - Advisors for this transaction include Citigroup Global Markets Inc. and Nomura Securities International, Inc. as co-lead managers and joint bookrunners, along with several 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 the sale of Non-Performing Loans (NPLs) and securitizations of re-performing loans (RPLs) [5]. - Since 2011, Freddie Mac has sold approximately $10.7 billion of NPLs and securitized about $81.3 billion of RPLs, which includes $30.4 billion of fully guaranteed MBS, $37.6 billion through the Seasoned Credit Risk Transfer (SCRT) program, and $13.3 billion through the SLST program [5].