Freddie Mac · OTC:FMCC
Freddie Mac — Investor Presentation (December 2022)
12 slides from Freddie Mac's investor presentation, Dec 31, 2022
Slide 1: Multifamily Credit Insurance Pool (MCIP) Program Overview
Multifamily Credit Insurance Pool (MCIP) Program Overview Investor Presentation as of December 31, 2022
Slide 2: Multifamily Credit Insurance Pool (MCIP) Program
MCIP Program Overview Additional Resources Multifamily Credit Insurance Pool (MCIP) Program Why MCIP? • Diversification: A large and diversified reference pool MCIP policies offer (re)insurers an innovative way to add U.S. multifamily market provides more stable and predictable performance exposure
Slide 3: MCIP CRT Transaction Evolution
MCIP Program Overview Additional Resources MCIP CRT Transaction Evolution We continue to develop innovative synthetic CRT vehicles to attract different sources of capital MCIP MCIP MCIP MCIP MCIP Category 2022-R51 2022-R42 2020-R3 2019-R2 2018-1 Number of Loans 231 257 136 88 55 Pool Cut-off Date Ba
Slide 4: Reference Obligations
MCIP Program Overview Additional Resources MCIP Reference Obligations MCIP policies transfer the credit risk on a pool of loans referencing fully guaranteed Freddie Mac Multifamily Participation Certificates (Multi PCs®) or credit enhancement on affordable multifamily-backed bonds issued by state an
Slide 5: Strategic Growth of Our Multi PC Securitizations Created the Need for MCIP
MCIP Program Overview Additional Resources Strategic Growth of Our Multi PC Securitizations Created the Need for MCIP Historical Execution Volume 2022 Issuance by 2022 Issuance by ($ millions) 2016 – 2022 Loan Product ($ millions) Loan Terms ($ millions) $11,609 Flex 2,139 5-7yr 2,290 Other 15y 2,25
Slide 6: Underwriting and Credit
MCIP Program Overview Additional Resources Underwriting and Credit Our credit policy and consistent underwriting practices are one of the main drivers of the strong performance of Freddie Mac Multifamily offerings Credit Philosophy General Guidelines Freddie Mac makes all credit, structuring and pri
Slide 7: MCIP Reference Pool Illustration
MCIP Program Overview Additional Resources MCIP Reference Pool Illustration* Creation of reference pool underlying recently issued or designated Multi PCs Loans Securitized in Reference Pool Partial Inclusion Loan Reference Pool Multi PCs Eligibility Criteria of Certain Loans Removals Designated $5.
Slide 8: Sample MCIP Structure (Companion Deal with MSCR)
MCIP Program Overview Additional Resources Sample MCIP Structure (Companion Deal with MSCR) Hypothetical allocations of Principal Payments Reference Pool: Comprises primarily loans backing • Freddie Mac Multi PCs • BCE products Class A-H • Other fully guaranteed certificates (Reference Tranche Only)
Slide 9: Sample Deal Subordination and Waterfall Trigger
MCIP Program Overview Additional Resources Sample Deal Subordination and Waterfall Trigger Trigger Not in Effect Trigger in Effect Last Loss Pro Rata Regular Principal 100% Regular Principal A-H Tranche Loss Position 100% Recovery 100% Recovery MCIP M-1 Tranche Reference Pool M-2 Tranche 100% Credit
Slide 10: (Re)insurer Participation
MCIP Program Overview Additional Resources Direct Cut (Re)insurer Participation through Freddie Mac enters into/executes primary insurance policy with cell company Clause Approved counterparty (re)insurers participate in MCIP transactions through a quota share reinsurance contract that is issued by
Slide 11: Additional Resources
MCIP Program Overview Additional Resources Additional Resources Stay Up to Date with Our Investor Resources Connect with Us • Securitization Overview - https://mf.freddiemac.com/docs/mf_securitization_investor-presentation.pdf • Subscribe to our Multifamily newsletters to receive timely research rep
Slide 12: Disclaimer
This product overview is not an offer to sell or a solicitation of an offer to buy any Freddie Mac securities or products. Offers for any given security or product are made only through applicable offering circulars, disclosure documents and related supplements, which incorporate Freddie Mac’s Annua