KBRA Assigns Preliminary Ratings to Freddie Mac’s STACR 2018-SPI4

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four
classes of certificates from Freddie Mac’s Structured Agency Credit Risk
(STACR) Securitized Participation Interests Trust, Series 2018-SPI4
(STACR 2018-SPI4), a credit risk sharing transaction with a total
certificate offering of $275,491,866. STACR 2018-SPI4 represents Freddie
Mac’s fifth risk transfer deal under the STACR SPI shelf. The offered
certificates are backed by participation interests (PI) in underlying
mortgage loans acquired by Freddie Mac.

The underlying STACR 2018-SPI4 mortgage pool consists of 20,380
residential mortgage loans with an aggregate cut-off balance of
approximately $6.9 billion. The loans are fully-amortizing, fixed-rate
mortgages (FRMs) of prime quality. The borrowers in the pool have a
weighted average (WA) original credit score of 755 and a WA
debt-to-income (DTI) ratio of 37.1%. The pool has a WA loan-to-value
(LTV) ratio of 82.7% and WA combined LTV (CLTV) of 83.1%, with
approximately 3.2% of the loans possessing subordinate financing at

KBRA’s rating approach incorporated loan-level analysis of the mortgage
pool through its Residential Mortgage Default and Loss Model, an
examination of the results from loan file reviews performed by an
independent third-party firm, cash flow modeling analysis of the
transaction’s payment structure, reviews of key transaction parties and
an assessment of the transaction’s legal structure and documentation.
This analysis is further described in our U.S.
RMBS Rating Methodology

For complete details on the analysis, please see our pre-sale report, STACR
, which was published on December 06, 2018 at www.kbra.com.

To access ratings, reports and disclosures, click here.

Related Publications: (available at www.kbra.com)


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About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S.
Securities and Exchange Commission as an NRSRO. In addition, KBRA is
designated as a designated rating organization by the Ontario Securities
Commission for issuers of asset-backed securities to file a short form
prospectus or shelf prospectus, is recognized by the National
Association of Insurance Commissioners as a Credit Rating Provider, and
is a certified Credit Rating Agency (CRA) by the European Securities and
Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is
registered with ESMA as a CRA.


Analytical Contacts:
Narvaez, Director

(646) 731-2478

Patrick Gervais, Senior Director
(646) 731-2426

Sharif Mahdavian, Senior Director
(646) 731-2301

Jack Kahan, Managing Director
(646) 731-2486


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