Freddie Mac Sells $261 Million in Non-Performing Loans

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) has successfully sold 1,458 deeply delinquent non-performing residential first lien loans (NPLs) through an auction, totaling approximately $261 million. The transaction, part of Freddie Mac's Standard Pool Offerings (SPO®), is expected to settle in May 2025.

The sale was structured in three pools:

• Pool #1: $178.3 million (990 loans)
• Pool #2: $65.4 million (375 loans)
• Pool #3: $17.6 million (93 loans)

RCAF Loan Acquisition, LP won Pool #1, while Residential Credit Opportunities X, secured Pools #2 and #3. About 54% of the loans were previously modified before becoming delinquent. Purchasers must honor existing loss mitigation agreements and seek additional assistance for distressed borrowers.

Positive

• Sale of $261M in non-performing loans reduces risk exposure and improves portfolio quality
• Successful competitive auction with multiple bidders indicating strong market interest
• Cover bid prices reaching low-mid 100s area for Pool #2 showing good value realization

Negative

• High delinquency rates averaging 20-23 months across pools
• 54% of loans were previously modified and failed, indicating persistent borrower distress
• Combined loan-to-value ratios reaching 55% in Pool #3 suggesting higher risk exposure

Awards 3 SPO Pools to Two Winners

MCLEAN, Va., April 01, 2025 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today announced it sold via auction 1,458 deeply delinquent non-performing residential first lien loans (NPLs) from its mortgage-related investments portfolio. The loans, with a balance of approximately $261 million, are currently serviced by Select Portfolio Servicing Inc., NewRez LLC, d/b/a Shellpoint Mortgage Servicing and Nationstar Mortgage LLC, d/b/a Rushmore Servicing. The transaction is expected to settle in May 2025. The sale is part of Freddie Mac’s Standard Pool Offerings (SPO^®). Freddie Mac, through its advisors, began marketing the transaction on March 6, 2025, to potential bidders active in the NPL market. Bids for the upcoming Extended Timeline Pool Offering (EXPO^®), which is a smaller sized pool of loans, are due from qualified bidders by April 10, 2025.

The loans in the SPO^® offerings were offered as three pools of mortgage loans. The pools consist 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 54 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 pools and winning bidders are summarized below:

Description	Pool #1	Pool #2	Pool #3
Unpaid Principal Balance	$ 178.3 million	$ 65.4 million	$ 17.6 million
Loan Count	990	375	93
BPO-weighted* CLTV (in %)	41	42	47
UPB-weighted CLTV (in %)	48	48	55
Average Months Delinquent	23	20	20
Average Loan Balance (in $000s)	180.1	174.4	189.0
Geographical Distribution	National	National	National
Winning Bidder	RCAF Loan Acquisition, LP	Residential Credit Opportunities X, LLC	Residential Credit Opportunities X, LLC
Cover Bid Price (% of UPB) (second-highest bid price)	Low 100s Area	Low-Mid 100s Area	Mid 90s Area

*Broker Price Opinions (BPOs)

Advisors to Freddie Mac on the transaction are BofA Securities, Inc. and First Financial Network, Inc.

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 $80.3 billion of RPLs consisting of $30.4 billion via fully guaranteed MBS, $36.9 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/.

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 total value of non-performing loans sold by Freddie Mac FMCC in April 2025?

Freddie Mac sold $261 million worth of non-performing loans across three pools, comprising 1,458 residential first lien loans.

Who won the bidding for Freddie Mac FMCC's NPL pools in April 2025?

RCAF Loan Acquisition, LP won Pool #1 ($178.3M), while Residential Credit Opportunities X, won both Pool #2 ($65.4M) and Pool #3 ($17.6M).

What percentage of Freddie Mac FMCC's NPL loans were previously modified?

Approximately 54% of the aggregate pool balance consists of mortgages that were previously modified and subsequently became delinquent.

What are the average delinquency periods for Freddie Mac FMCC's NPL pools?

Pool #1 averaged 23 months delinquent, while Pools #2 and #3 averaged 20 months delinquent.

What obligations do purchasers of Freddie Mac FMCC's NPL pools have?

Purchasers must honor existing loss mitigation agreements, complete pending actions, and solicit distressed borrowers for additional assistance.