Freddie Mac Announces $233 million Non-Performing Loan Sale

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) has announced a $233 million non-performing loan (NPL) sale via auction. The offering includes a Standard Pool Offering (SPO) and two Extended Timeline Pool Offerings (EXPO) targeting smaller investors, including non-profits and Minority, Women, Disabled, LGBTQ+, Veteran or Service-Disabled Veteran-Owned Businesses (MWDOBs). Bids are due by September 26, 2024 for the SPO pool and October 10, 2024 for the EXPO pools.

The NPLs consist of seasoned, deeply delinquent residential first lien whole loans from Freddie Mac's mortgage-related investments portfolio. This sale is part of Freddie Mac's strategy to reduce less-liquid assets in an economically sensible way. Since 2011, Freddie Mac has sold $10.3 billion of NPLs and securitized approximately $78.6 billion of re-performing loans (RPLs).

Positive

• Potential reduction of $233 million in non-performing loans from Freddie Mac's portfolio
• Opportunity for smaller investors, including non-profits and MWDOBs, to participate in the auction
• Continuation of Freddie Mac's strategy to reduce less-liquid assets in an economically sensible way

Negative

• Presence of $233 million in deeply delinquent residential first lien whole loans in Freddie Mac's portfolio

Includes two Extended Timeline Pool Offering Targeting Smaller Investors

MCLEAN, Va., Sept. 04, 2024 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) announced today it will offer approximately $233 million in non-performing loans (NPL) for sale via auction. The NPLs being offered consist of seasoned, deeply delinquent residential first lien whole loans held in Freddie Mac’s mortgage-related investments portfolio. The NPLs are currently serviced by Select Portfolio Servicing Inc., Newrez LLC, d/b/a Shellpoint Mortgage Servicing or Nationstar Mortgage LLC, d/b/a Rushmore Servicing.

The NPLs are being marketed via three pools: a Standard Pool Offering (SPO^®) and two Extended Timeline Pool Offerings (EXPO^®), which target participation by smaller investors, including non-profits and Minority, Women, Disabled, LGBTQ+, Veteran or Service-Disabled Veteran-Owned Businesses (MWDOBs).

Bids are due from qualified bidders by September 26, 2024 for the SPO pool, and October 10, 2024 for the EXPO pools.

All eligible bidders, including private investors, MWDOBs, non-profits and neighborhood advocacy organizations are encouraged to bid. To participate, all potential bidders must be approved by Freddie Mac and successfully complete a qualification package to access the secure data room containing information about the NPLs and to bid on the NPL pool(s). The bids are to be made on an all-or-none basis for any pool. The winning bidder for each pool will be determined on the basis of the economics of the bids, subject to meeting Freddie Mac’s internal reserve levels, at Freddie Mac’s sole discretion.

Advisors to Freddie Mac on the transaction are Citigroup Global Markets Inc. and First Financial Network, Inc., a woman-owned business.

Freddie Mac’s seasoned loan offerings focus on reducing less-liquid assets in the company’s mortgage-related investments portfolio in an economically sensible way. This includes sales of NPLs, securitizations of re-performing loans (RPLs) and structured RPL transactions. Since 2011, Freddie Mac has sold $10.3 billion of NPLs and securitized approximately $78.6 billion of RPLs consisting of $30.4 billion via fully guaranteed MBS, $35.5 billion via the Seasoned Credit Risk Transfer (SCRT) program, and $12.7 billion via the Seasoned Loans Structured Transaction (SLST) program. Requirements guiding the servicing of these transactions are focused on improving borrower outcomes and stabilizing communities. Additional information about Freddie Mac’s seasoned loan offerings is available at
http://www.freddiemac.com/seasonedloanofferings/.

The financial and other information contained in the documents that may be accessed on this page speaks only as of the date of those documents. The information could be out of date and no longer accurate. Freddie Mac undertakes no obligation, and disclaims any duty, to update any of the information in those documents.

Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website | Consumers | X | LinkedIn | Facebook | Instagram | YouTube

MEDIA CONTACT: Fred Solomon
703-903-3861
Frederick_Solomon@freddiemac.com

FAQ

What is the value of the non-performing loan sale announced by Freddie Mac (FMCC)?

Freddie Mac (FMCC) announced a non-performing loan sale valued at approximately $233 million.

When are the bids due for Freddie Mac's (FMCC) non-performing loan auction?

Bids are due by September 26, 2024 for the Standard Pool Offering (SPO) and October 10, 2024 for the Extended Timeline Pool Offerings (EXPO).

What types of investors is Freddie Mac (FMCC) targeting with its Extended Timeline Pool Offerings?

Freddie Mac (FMCC) is targeting smaller investors, including non-profits and Minority, Women, Disabled, LGBTQ+, Veteran or Service-Disabled Veteran-Owned Businesses (MWDOBs) with its Extended Timeline Pool Offerings (EXPO).

How much has Freddie Mac (FMCC) sold in non-performing loans since 2011?

Since 2011, Freddie Mac (FMCC) has sold $10.3 billion of non-performing loans (NPLs).