At Freddie Mac Multifamily, we're focused on being a reliable source of financing through all economic cycles. One way we support that commitment is through our credit risk transfer (CRT) programs: Multifamily Credit Insurance Pool® (MCIP®) Transactions and Multifamily Structured Credit Risk® (MSCR®) Notes. These programs are designed to transfer a portion of our multifamily credit risk to private investors and help strengthen our funding model. They allow us to continue providing liquidity and financing certainty for our Optigo® network through changing market conditions. 

Continuity throughout the Loan Lifecycle

Under MCIP and MSCR, Freddie Mac remains the master servicer on the underlying fully guaranteed loans. From underwriting and servicing to risk transfer, we're involved throughout the life of the loan, helping provide consistency and transparency for lenders, servicers and borrowers. 

We also retain exposure through a first-loss position, meaning we continue to have skin in the game. We're invested in the long-term performance of these loans and continue to remain focused on effective servicing and risk management. 

Benefits across the Market

Our CRT vehicles provide support across multiple markets: 

  • Lenders benefit from a strong, resilient funding model that helps Freddie Mac remain a reliable source of liquidity through market cycles. 
  • Borrowers benefit from competitive pricing as expanded CRT executions provide greater flexibility and help lower spreads. 
  • Investors gain exposure to U.S. multifamily credit risk through structured notes or certificates to diversify their portfolio. 

The growth of these programs reflects their importance in supporting the market. As of June 30, we’ve settled 14 MCIP-R transactions totaling approximately $135.5 billion of reference obligations and 14 MSCR-MN notes totaling approximately $144.6 billion of reference obligations.

MSCR and MCIP are about more than transferring risk. These programs help us remain a dependable source of liquidity so we can continue supporting lenders, borrowers and investors through all market conditions.