Freddie Mac Celebrates 100th ACIS Transaction in Single-Family Credit Risk Transfer Program

MCLEAN, Va., Aug. 12, 2024 (GLOBE NEWSWIRE) - In a groundbreaking achievement, the Freddie Mac OTC:FMCC Single-Family Credit Risk Transfer (CRT) Program has officially closed its 100th Agency Credit Insurance Structure (ACIS®) transaction, confirming its commitment to transferring credit risk from the U.S. residential mortgage market to the global insurance and reinsurance markets. This milestone represents a significant confirmation of the program's success in enhancing the stability and risk distribution within the mortgage sector.

Understanding the ACIS® Framework

The ACIS® framework is a pioneering insurance-based risk-sharing model designed by Freddie Mac to attract private capital participation in the home mortgage market. By leveraging the credit experience and underwriting capabilities of insurance and reinsurance companies, the CRT program through ACIS® initiatives has effectively diffused mortgage credit risk away from the taxpayers and cultivated a more resilient housing finance system. The 100th ACIS® transaction underscores the robust appetite among global insurance markets to assume U.S. mortgage credit risk and the confidence these markets place in Freddie Mac's underwriting standards.

Milestones and Implications

Since its inception, the Freddie Mac CRT program has consistently worked towards achieving its mission of distributing risk and reducing taxpayer exposure. The 100th ACIS® transaction exemplifies not only the scale of the program's expansion but also the operational efficiencies gained over time. As Freddie Mac reaches this 100th transaction, it celebrates the cumulative efforts that have fostered innovation and growth in the secondary mortgage market's risk-sharing capabilities, all while bolstering investor confidence and participation.

FreddieMac, CRT, ACIS