Freddie Mac Sells $188 Million in Non-Performing Loans
Rhea-AI Summary
Freddie Mac (OTCQB: FMCC) has announced the sale of 982 deeply delinquent non-performing residential first lien loans (NPLs) from its mortgage-related investments portfolio. The loans, with a balance of approximately $188 million, are currently serviced by Select Portfolio Servicing Inc., NewRez , and Nationstar Mortgage The transaction is expected to settle in November 2024 and is part of Freddie Mac's Standard Pool Offerings (SPO®).
The winning bidder for the SPO pool is J.P. Morgan Mortgage Acquisition Corp. The pool consists of geographically diverse properties with an average loan balance of $191,700 and an average delinquency of 32 months. Approximately 57% of the aggregate pool balance comprises previously modified mortgages that subsequently became delinquent.
This sale is part of Freddie Mac's ongoing efforts to reduce less-liquid assets in its mortgage-related investments portfolio. Since 2011, Freddie Mac has sold $10.3 billion of NPLs and securitized approximately $79.3 billion of re-performing loans (RPLs).
AI-generated analysis. Not financial advice.
Positive
- Sale of $188 million in non-performing loans, potentially improving Freddie Mac's portfolio quality
- Successful auction with J.P. Morgan Mortgage Acquisition Corp as the winning bidder
- Part of a larger strategy that has sold $10.3 billion of NPLs and securitized $79.3 billion of RPLs since 2011
Negative
- High delinquency rate with an average of 32 months for the loans in the pool
- 57% of the pool balance consists of previously modified mortgages that became delinquent again
News Market Reaction – FMCC
On the day this news was published, FMCC declined 0.87%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Awards SPO Pool to One Winner
MCLEAN, Va., Oct. 01, 2024 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today announced it sold via auction 982 deeply delinquent non-performing residential first lien loans (NPLs) from its mortgage-related investments portfolio. The loans, with a balance of approximately
The loans in the SPO® offering were offered as one pool of mortgage loans. The pool consists of mortgage loans secured by geographically diverse properties.
Given the delinquency status of the loans, the borrowers have likely been evaluated previously for loss mitigation, including modification or other alternatives to foreclosure, or are in foreclosure. Mortgages that were previously modified and subsequently became delinquent comprise approximately 57 percent of the aggregate pool balance. Additionally, purchasers are required to honor the terms of existing loss mitigation agreements and solicit distressed borrowers for additional assistance except in limited cases and ensure all pending loss mitigation actions are completed.
The SPO pool and winning bidder is summarized below:
| Description | Pool #1 |
| Unpaid Principal Balance | |
| Loan Count | 982 |
| BPO-weighted* CLTV (in %) | 45 |
| UPB-weighted CLTV (in %) | 53 |
| Average Months Delinquent | 32 |
| Average Loan Balance (in | 191.7 |
| Geographical Distribution | National |
| Winning Bidder | J.P. Morgan Mortgage Acquisition Corp. |
| Cover Bid Price (% of UPB) (second-highest bid price) | Low 100s Area |
*Broker Price Opinions (BPOs)
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
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
