Funding
Freddie Mac Prices $243.4 Million SLST Deal With $213 Million Senior Certificates
By News Desk ·
Key takeaways
- Freddie Mac priced the SLST Series 2026-1 securitization at approximately $243.4 million, split between $213.0 million in guaranteed senior certificates and $30.4 million in non-guaranteed subordinate certificates.
- The subordinate certificates were auctioned and awarded on October 22, 2026, and the transaction is expected to settle on October 29, 2026.
- The collateral pool holds 1,282 fixed and adjustable rate seasoned loans, none more than 150 days delinquent as of the cut-off date.
Freddie Mac priced the Freddie Mac Seasoned Loans Structured Transaction Trust Series 2026-1, a securitization of approximately $243.4 million, the company said. The deal includes approximately $213.0 million in guaranteed senior certificates and approximately $30.4 million in non-guaranteed subordinate certificates, according to Stock Titan.
Freddie Mac's SLST Series 2026-1 Structure
The subordinate certificates were auctioned and awarded on October 22, 2026, and the transaction is expected to settle on October 29, 2026. The collateral backing the certificates consists of 1,282 fixed and adjustable rate seasoned loans, including loans modified to assist borrowers at risk of foreclosure and loans that were never modified. As of the cut-off date, none of the loans are more than 150 days delinquent.
Select Portfolio Servicing, Inc., Selene Finance LP, and Newrez LLC, d/b/a Shellpoint Mortgage Servicing, will initially service the loans. Citigroup Global Markets Inc. and Wells Fargo Securities, LLC are co-lead managers and joint bookrunners, with Hilltop Securities Inc., Nomura Securities International Inc., and R. Seelaus & Co., LLC as co-managers. Wells Fargo Securities separately cut price targets on Western Digital to $450 and Seagate to $865 while keeping Overweight ratings, TradingView reported on October 16, 2026.
Freddie Mac said the SLST program is a fundamental part of its seasoned loan offerings, which reduce less-liquid assets in its mortgage-related investments portfolio and shed credit and market risk. Since 2011, Freddie Mac has sold approximately $11.4 billion of non-performing loans and securitized approximately $81.7 billion of re-performing loans, including $30.5 billion of fully guaranteed MBS, $37.6 billion through the Seasoned Credit Risk Transfer program, and $13.6 billion through the SLST program.
Freddie Mac's Recent Capital Actions
According to akta.pro company records, Freddie Mac completed a fixed-price tender offer for approximately $1.4 billion of STACR notes across seven classes at above-par prices in May 2026. The company's total mortgage portfolio stood at $3.7 trillion as of Q1 2026, with Q1 2026 net income of $3.6 billion, up 27% year-over-year, and Q1 2026 net revenues of $6.1 billion.
Earlier Freddie Mac Deals This Month
On October 26, 2026, Freddie Mac announced a fixed-price cash tender offer for five STACR note classes, with the offer period running from October 26 to October 30, 2026, and settlement expected on November 3, 2026, Stock Titan reported. On October 20, 2026, Treasury Secretary Scott Bessent said ownership changes for Fannie Mae and Freddie Mac are unclear and that releasing them could spike mortgage rates, Semafor reported. On October 12, 2026, Mizuho downgraded Fannie Mae and Freddie Mac to Neutral from Buy, citing a receding privatization timeline by 2028, Seeking Alpha reported.
Freddie Mac's Next Steps
The STACR tender offer period runs through October 30, 2026, with settlement expected on November 3, 2026. The SLST Series 2026-1 transaction is expected to settle on October 29, 2026.