Freddie Mac Prices Approximately $707 Million Securitization of Re-Performing Loans
Rhea-AI Summary
Freddie Mac (OTCQB: FMCC) has announced the pricing of its second Seasoned Credit Risk Transfer Trust (SCRT) offering of 2025, a $707 million securitization backed by re-performing loans (RPLs). The transaction includes $673 million in guaranteed senior certificates and $34 million in non-guaranteed mezzanine and subordinate certificates.
The underlying collateral comprises 4,002 seasoned fixed-, step-, and adjustable-rate RPLs, with all mortgage loans either current or no more than 30 days delinquent. The transaction, expected to settle on September 12, 2025, will be serviced by Newrez LLC and Select Portfolio Servicing, Inc. To date, Freddie Mac has sold over $10.7 billion of Non-Performing Loans and securitized approximately $80.6 billion of RPLs.
Positive
- All underlying mortgage loans are performing well - either current or maximum 30 days delinquent
- Transaction contributes to reducing less-liquid assets in Freddie Mac's portfolio
- Servicing requirements prioritize borrower retention and neighborhood stability
- Strong track record with $80.6 billion of RPLs already securitized
Negative
- Exposure to credit and market risk for non-guaranteed portion ($34 million)
- Complex transaction structure with multiple tranches may affect liquidity
News Market Reaction – FMCC
On the day this news was published, FMCC gained 4.02%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
MCLEAN, Va., Sept. 09, 2025 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) announced today the pricing of its second Seasoned Credit Risk Transfer Trust (SCRT) offering of 2025—a securitization of approximately
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2025-2 includes approximately
On and after closing, the Mortgage Loans will be serviced by Newrez LLC d/b/a Shellpoint Mortgage Servicing and Select Portfolio Servicing, Inc. and will be serviced in accordance with requirements that, in the event of default, prioritize borrower retention options and promote neighborhood stability.
Advisors to this transaction are Wells Fargo Securities, LLC and Citigroup Global Markets Inc., as co-lead managers and joint bookrunners, and BofA Securities, Inc., Nomura Securities International, Inc., Oppenheimer & Co. Inc., and R. Seelaus & Co., LLC (a woman-owned business), as co-managers.
To date, Freddie Mac has sold over
This announcement is not an offer to sell any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (SEC) on February 13, 2025; all other reports Freddie Mac filed with the SEC pursuant to Section 13(a) of the Securities Exchange Act of 1934 (Exchange Act) since December 31, 2024, excluding any information "furnished" to the SEC on Form 8-K; and all documents that Freddie Mac files with the SEC pursuant to Sections 13(a), 13(c) or 14 of the Exchange Act, excluding any information “furnished” to the SEC on Form 8-K.
Freddie Mac’s press releases sometimes contain forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, some of which are beyond the company’s control. Management’s expectations for the company’s future necessarily involve a number of assumptions, judgments and estimates, and various factors could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements. These assumptions, judgments, estimates and factors are discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2024, and its reports on Form 10-Q and Form 8-K, which are available on the Investor Relations page of the company’s website at www.FreddieMac.com/investors and the SEC’s website at www.sec.gov. The company undertakes no obligation to update forward-looking statements it makes to reflect events or circumstances occurring after the date of this press release.
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
