Freddie Mac recently announced its Single-Family and Multifamily Credit Risk Transfer (CRT) programs acquired credit protection of approximately $833 million on more than $50 billion unpaid principal balance (UPB) of mortgage loans, brokered by Aon plc. This is a professional services firm, sub-brokered by certified minority-business enterprise Protecdiv in 2022, Freddie Mac announced in a release.

“Freddie Mac is committed to the inclusion of qualified, diverse-owned businesses in the sourcing of financial services,” Mike Reynolds, Freddie Mac vice president of CRT, said in the release.

“We actively seek out third party-certified and self-certified minority businesses capable of meeting our demanding requirements as part of our overall effort to bring greater equity to the housing finance industry,” added Freddie Mac’s Jeff Shue, senior director of Single-Family CRT.

Freddie Mac’s Single-Family CRT ACIS (Agency Credit Insurance Structure) program closed three (re)insurance transactions in 2022 placed by Aon as broker and Protecdiv as sub-broker. These included ACIS 2022-SPH3, which closed in November 2022, and ACIS 2022-SPL6 and ACIS 2022-SPL7, which closed in December 2022. Together the transactions totaled $634 million of credit protection on $44.6 billion UPB of loans, Freddie stated in the release.

“Protecdiv is a certified MBE brokerage firm that focuses exclusively on large, enterprise-scale risks. We hope their participation in our transactions will help draw more minority-led firms into this space. Freddie Mac is committed to supporting equity throughout the housing industry,” Robert Koontz, Freddie Mac’s senior vice president for Multifamily Capital Markets, said.

In November 2022, Freddie Mac completed a Multifamily Credit Insurance Pool (MCIP) insurance-based credit risk sharing transaction, MCIP 2022-R5, with coverage of $198.9 million on a reference pool of $5.5 billion UPB, with Aon as broker and Protecdiv as a sub-broker.     

“Aon has proudly served Freddie Mac for nearly a decade, brokering their ground-breaking mortgage reinsurance programs,” Joe Monaghan, Global Growth leader for Aon’s Reinsurance Solutions and CEO of Aon’s Public Sector Partnership, said. “We are thrilled to collaborate with Protecdiv as we continue to deliver on Freddie Mac’s and Aon’s shared commitment to greater inclusion and diversity, innovation, and impact.”

Freddie Mac’s Single-Family CRT and Multifamily CRT programs transfer credit risk away from U.S. taxpayers to global private capital via securities and (re)insurance policies, providing stability, liquidity and affordability to the U.S. housing market. The GSE Single-Family CRT market was founded when Freddie Mac issued the first STACR (Structured Agency Credit Risk) notes in July 2013.

In November 2013, ACIS (Agency Credit Insurance Structure) was introduced. Today, the industry-leading and award-winning programs attract institutional investors and (re)insurance companies worldwide. For specific STACR and ACIS transaction data, visit Clarity Data IntelligenceSM.

“We are delighted to work with Freddie Mac and to help it achieve its vital mission, including its effort to improve equity in the housing finance industry,” Kael Coleman, founder and CEO at Protecdiv, said. “Protecdiv was built to service the supplier diversity goals of large U.S. businesses and public entities. Through our proud collaboration with Aon, we now have the scale, alongside our diverse supplier qualifications and extensive expertise, to service large corporations.”