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Uniform Mortgage-Backed Securities™ and Mortgage-Backed Securities

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Uniform Mortgage-Backed Securities™ and Mortgage-Backed Securities Freddie Mac Uniform Mortgage-Backed Securities™ and Mortgage-Backed Securities UMBS® and MBS Freddie Mac issues and guarantees Uniform Mortgage-Backed Securities, or “UMBS,” and Mortgage- Backed Securities, or “MBS.” UMBS and MBS are securities that represent undivided beneficial ownership interests in, and the right to receive payments from, pools of one- to four-family residential mortgages that are held in trust for investors. The term “Security” means a UMBS or MBS, as applicable, and the term “Securities” means UMBS and/or MBS, as applicable. Freddie Mac’s Guarantee We guarantee the payment of interest and principal on the Securities as described in this Offering Circular. Principal and interest payments on the Securities are not guaranteed by, and are not debts or obligations of, the United States or any federal agency or instrumentality other than Freddie Mac. We alone are responsible for making payments on our guarantee. Tax Status and Securities Law Exemptions The Securities are not tax-exempt. Because of applicable securities law exemptions, we have not registered the Securities with any federal or state securities commission. No securities commission has reviewed this Offering Circular. The Securities may not be suitable investments for you. You should not purchase Securities unless you have carefully considered and are able to bear the associated prepayment, interest rate, yield, market and other risks of investing in them. The Risk Factors section beginning on page 24 highlights some of these risks. Offering Circular dated August 17, 2020 If you intend to purchase Securities, you should rely only on the information in this Offering Circular, in the disclosure documents that we incorporate by reference in this Offering Circular as stated under Additional Information and in the related pool supplement (each, a “Pool Supplement”) that we will make available on our internet website as to each Pool upon its formation. We also make available on our internet website certain pool- and loan-level information regarding each of the Mortgages backing our Securities based on information furnished to us by the sellers and servicers of the Mortgages. We may not have independently verified information furnished to us by sellers and servicers regarding the Mortgages backing our Securities and make no representations or warranties concerning the accuracy or completeness of that information. In addition, sellers may provide information about mortgages that they sell to us in separate additional supplements (“Additional Supplements”). We have not verified the information in any Additional Supplements and make no representations or warranties concerning the accuracy or completeness of that information. Each Pool Supplement and Additional Supplement contains information on a pool-level basis as of the date of the issuance of the related Securities. For the convenience of investors, we may post Additional Supplements on our internet website and furnish them upon request. You can find additional and updated information about our Securities on our internet website at www.freddiemac.com/mbs. We have not authorized anyone to provide you with different information. Any information that may be furnished to you by a third party may not be reliable. This Offering Circular, any related Pool Supplement, any Additional Supplement, any loan-level information and any Incorporated Documents may not be correct after their dates. We are not offering the Securities in any jurisdiction that prohibits their offer. 2 TABLE OF CONTENTS Description Page Freddie Mac ...................................................................................................................................................................................... 5 General ...................................................................................................................................................................................... 5 Conservatorship ........................................................................................................................................................................ 5 Single Security Initiative, the CSP and Commingling .............................................................................................................. 6 Purchase Agreement ................................................................................................................................................................. 9 Our Relief Refinance and Mortgage Modification Programs .................................................................................................. 10 Additional Information ................................................................................................................................................................... 18 Summary ......................................................................................................................................................................................... 19 Risk Factors .................................................................................................................................................................................... 24 Investment Factors .................................................................................................................................................................. 34 Governance Factors ................................................................................................................................................................ 26 Prepayment and Yield Factors ................................................................................................................................................ 28 Credit Factors .......................................................................................................................................................................... 34 Factors Related to Alignment with Fannie Mae and the Single Security Initiative ................................................................. 36 Application of Proceeds .................................................................................................................................................................. 38 Description of the Mortgages that back Securities .......................................................................................................................... 38 General .................................................................................................................................................................................... 38 Fixed-Rate Mortgages ............................................................................................................................................................. 39 Special Mortgage Characteristics ............................................................................................................................................ 39 Mortgage Purchase and Servicing Standards .......................................................................................................................... 46 Credit Risk Retention...................................................................................................................................................................... 53 Description of the Securities ........................................................................................................................................................... 54 General .................................................................................................................................................................................... 54 Pool Formation ....................................................................................................................................................................... 54 General Pooling Criteria ......................................................................................................................................................... 55 Pooling Criteria for Mortgages with Special Characteristics .................................................................................................. 56 Pool Factors and Monthly Reporting Periods ......................................................................................................................... 56 Payment Dates ........................................................................................................................................................................ 57 Payments of Principal ............................................................................................................................................................. 57 Payments of Interest ................................................................................................................................................................ 58 Record Dates ........................................................................................................................................................................... 58 Final Payment Date ................................................................................................................................................................. 58 Guarantees .............................................................................................................................................................................
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