Freddie Mac MBS (non-UMBS)
Beginning June 3, 2019, Freddie Mac will issue non-TBA-eligible Freddie Mac 55-day MBS, replacing our current 45-day non-TBA-eligible Gold PC. Freddie Mac non-TBA-eligible Gold Fixed-Rate PCs will be eligible for exchange into Freddie Mac MBS beginning May 7 or investors can purchase newly issued Freddie Mac MBS beginning June 3.
Freddie Mac MBS are pass-through securities, each representing an undivided interest in a pool of residential mortgages. Freddie Mac offers traditional 30-year fixed-rate Freddie Mac MBS in addition to 20-year and 15-year securities. Freddie Mac MBS are backed by fully amortizing mortgages and pay on a 55-day delay schedule. Freddie Mac guarantees the timely payment of interest and scheduled principal on all Freddie Mac MBS. Freddie Mac MBS feature a payment delay of only 55 days from the time interest begins to accrue and the time the investor receives a payment.
Freddie Mac MBS are 55-day payment delay non-TBA-eligible securities; if a 45-day payment delay non-TBA-eligible Gold PC security is exchanged for the corresponding Freddie Mac MBS, a one-time 10-day float compensation payment will also be paid to the investor.
This product overview is not an offer to sell or solicitation of an offer to buy any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac’s Information Statement and related supplements.