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About CRT

Freddie Mac’s Single-Family Credit Risk Transfer (CRT) programs are designed to distribute a portion of Freddie Mac’s mortgage credit risk to third-party participants. The industry-leading and award-winning programs attract capital markets institutional investors and (re)insurance companies worldwide.

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The Case for CRT

Freddie Mac introduced the first GSE CRT program in 2013 in response to the 2008 financial crisis. CRT has not only evolved into a viable asset class for participants, it has become a part of Freddie Mac’s normal business activities, fulfilling the corporate objective to transfer credit risk exposure on loans that Freddie Mac owns or guarantees away from U.S. taxpayers. CRT has proven to be a successful component of the Freddie Mac risk management toolkit, including during times of economic stress.

Business Process


Loan Origination

Lenders originate loans to borrowers according to Freddie Mac origination guidelines, and Freddie Mac purchases such loans.


UMBS Securities

Loans purchased by Freddie Mac are grouped and sold to Uniform Mortgage Backed Securities (UMBS) investors, transferring interest rate risk away from Freddie Mac.


CRT Eligibility

Loans backing the guaranteed securities (UMBS) are subject to additional CRT eligibility requirements and screened for underwriting defects and performance deficiencies before being included in a reference pool of a CRT transaction.


Transaction Issuance

Transactions consist of classes of securities representing specific tranches of credit risk exposure. Freddie Mac maintains “skin in the game” by retaining at least 5% of each tranche, thus aligning the interests of Freddie Mac and participants with respect to reference pool performance.

The Three Spokes of CRT

Freddie Mac CRT comprises three distinct spokes of risk sharing.

Freddie Mac CRT Program Evolution

Freddie Mac’s flagship STACR® (Structured Agency Credit Risk) and ACIS® (Agency Credit Insurance Structure®) programs have evolved significantly through their eight-year history. View the milestones.

Credit Risk Management Framework

While CRT is a core component of Freddie Mac credit risk management, CRT participants also benefit from the disciplined framework.

Additional Resources