Weekly Real Estate News
Summary
Freddie Mac accepted $1,110,741,000 in original principal across five STACR credit-risk transfer note classes after an October 30 tender deadline. Participation ranged from 95.37% to 100% by class. Freddie Mac announced results November 2 and expects settlement November 3; original principal is not the cash consideration. This materially updates WRE's October 26 report of the offer launch.
Freddie Mac has accepted approximately $1.11 billion in original principal amount of mortgage credit-risk transfer securities through a cash tender offer that closed October 30. The government-sponsored mortgage company disclosed the results Monday, November 2, with settlement expected Tuesday.
The transaction covers five classes of Structured Agency Credit Risk, or STACR, notes issued between 2020 and 2023. Holders tendered a total of $1,110,741,000 in original principal, according to Freddie Mac’s November 2 results announcement. The original principal figure identifies the face amount of the notes accepted; it is not the cash purchase price or a measure of the outstanding mortgage balances backing the securities.
Participation reached at least 95% in every class
Freddie Mac accepted the full $225 million original principal amount of the STACR 2020-HQA5 B-1 class and the full $211 million of STACR 2021-DNA3 B-1. Another $338.82 million was accepted from the 2021-DNA5 B-1 class, equal to 99.95% of its original principal.
The remaining classes also attracted substantial participation. Investors tendered $212.666 million, or 95.37%, of the 2021-HQA1 B-1 class, and $123.255 million, or 97.05%, of the 2023-DNA2 M-1B class. Freddie Mac’s figures reflect tenders validly submitted by the October 30 expiration deadline.
Those high participation rates suggest that holders of the targeted classes were broadly willing to exit at the offer terms. They do not establish that all investors in Freddie Mac credit-risk transfer securities share that view, and the company did not characterize the result as a change in its broader mortgage credit outlook.
Why the transaction matters to mortgage capital markets
STACR securities are part of Freddie Mac’s single-family credit-risk transfer program. Through STACR notes and related insurance arrangements, the company transfers a portion of mortgage credit risk to private investors. The structure has become an established component of the secondary mortgage market since Freddie Mac’s first STACR issuance in 2013.
Buying back selected notes changes the mix of securities held by outside investors and the company’s obligations associated with those classes. It should not be confused with a purchase of individual home loans, a mortgage-rate change, or a new guarantee for borrowers. Freddie Mac did not announce any change to mortgage eligibility or servicing rules alongside the tender results.
The November 2 announcement follows the October 26 offer launch, which specified a fixed cash consideration per $1,000 of original principal for each eligible class. WRE News previously reported the tender’s opening; Monday’s accepted amounts provide the substantive outcome that was not known at launch.
Wells Fargo Securities and Cantor Fitzgerald served as lead dealer managers, with CastleOak Securities as co-dealer manager. Freddie Mac expects settlement on November 3. The announced date remains an expectation until settlement occurs, and the tender results should not be reported as a completed settlement ahead of that date.
Primary sources: Freddie Mac tender results, November 2, 2026; Freddie Mac original offer, October 26, 2026.
