Freddie Mac priced its Seasoned Loans Structured Transaction Trust (SLST) Series 2025‑2, a securitization of approximately $343.2 million in seasoned residential mortgage loans.
The transaction includes $308.8 million in guaranteed senior certificates and $34.3 million in non‑guaranteed subordinate certificates, which were auctioned and awarded on October 24.
The underlying collateral consists of 1,985 fixed‑, adjustable‑, and step‑rate loans, none of which are more than 150 days delinquent. The loans include both those modified to assist borrowers at risk of foreclosure and those that were never modified.
Servicing will be handled by Select Portfolio Servicing, Inc. and Newrez LLC, d/b/a Shellpoint Mortgage Servicing, and the transaction is expected to settle on October 30.
The SLST program is part of Freddie Mac’s broader seasoned loan offerings, which aim to reduce less‑liquid assets in its mortgage‑related investments portfolio. Since 2011, Freddie Mac has sold $10.7 billion of non‑performing loans and securitized $81.3 billion of re‑performing loans, including $30.4 billion of fully guaranteed MBS, $37.6 billion through the Seasoned Credit Risk Transfer program, and $13.3 billion through SLST.
The transaction was structured with Citigroup Global Markets Inc. and Nomura Securities International, Inc. as co‑lead managers and joint bookrunners, and Academy Securities, Inc., BofA Securities, Inc., Mizuho Securities USA LLC, and Wells Fargo Securities, LLC as co‑managers.
Freddie Mac, a government‑sponsored enterprise, provides liquidity, stability, and affordability to the U.S. mortgage market by purchasing mortgages, pooling them into mortgage‑backed securities, and guaranteeing timely payments to investors. The SLST program helps transfer credit and market risk to private investors through economically sound transactions.
The transaction occurs amid a period of declining mortgage rates, which have reached their lowest levels in over a year, supporting sustained high refinancing activity.
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