Freddie Mac Announces $290 million Non-Performing Loan Sale

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) has announced a $290 million non-performing loan (NPL) sale through auction. The offering comprises seasoned, deeply delinquent residential first lien whole loans from Freddie Mac's mortgage-related investments portfolio.

The NPLs are being offered through four pools: three Standard Pool Offerings (SPO) and one Extended Timeline Pool Offering (EXPO) targeting smaller investors, including non-profits and minority-owned businesses. Bids are due by March 27, 2025 for SPO pools and April 10, 2025 for the EXPO pool.

Since 2011, Freddie Mac has sold $10.4 billion of NPLs and securitized approximately $79.6 billion of re-performing loans (RPLs), including $30.4 billion via guaranteed MBS, $36.2 billion through SCRT program, and $13.0 billion via SLST program.

Positive

• Diversification of investor base through EXPO pool targeting smaller investors
• Strong track record with $10.4B NPL sales since 2011
• Substantial securitization portfolio of $79.6B in re-performing loans

Negative

• $290M of non-performing loans indicating potential credit losses
• Deeply delinquent loan status suggests poor loan performance

Includes one Extended Timeline Pool Offering Targeting Smaller Investors

MCLEAN, Va., March 07, 2025 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) announced today it will offer approximately $290 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 four pools: three Standard Pool Offerings (SPO^®) and one Extended Timeline Pool Offering (EXPO^®), which targets 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 March 27, 2025 for the SPO pools, and April 10, 2025 for the EXPO pool.

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 separately. 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 BofA Securities, 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 $10.4 billion of NPLs and securitized approximately $79.6 billion of RPLs consisting of $30.4 billion via fully guaranteed MBS, $36.2 billion via the Seasoned Credit Risk Transfer (SCRT) program, and $13.0 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 and affordability 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 Freddie Mac's (FMCC) latest non-performing loan sale offering?

Freddie Mac is offering approximately $290 million in non-performing loans for sale via auction in March 2025.

When are the bid deadlines for FMCC's NPL pools in 2025?

Bids are due March 27, 2025 for Standard Pool Offerings (SPO) and April 10, 2025 for the Extended Timeline Pool Offering (EXPO).

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

Since 2011, Freddie Mac has sold $10.4 billion of NPLs.

What is the total value of re-performing loans securitized by FMCC?

Freddie Mac has securitized approximately $79.6 billion of re-performing loans through various programs.

Who are the current servicers of FMCC's non-performing loans in this sale?

The NPLs are currently serviced by Select Portfolio Servicing Inc., Newrez (Shellpoint Mortgage Servicing), and Nationstar Mortgage (Rushmore Servicing).