Freddie Mac Sells $3.8 Million in Non-Performing Loans
The sale is part of Freddie Mac’s effort to reduce less-liquid assets in its mortgage-related investments portfolio.
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Rhea-AI Summary
Freddie Mac (FMCC) sold approximately $3.8 million in non-performing residential first-lien loans through an auction to Igloo Series VII Trust. The sale covers 25 loans in Texas under its Extended Timeline Pool Offering program, with settlement expected in December 2026. Selene Finance currently services the loans. The pool averages 15 months delinquent, and previously modified mortgages that became delinquent represent approximately 49 percent of its balance.
Positive
- Minor point. Forward-looking: it has not happened yet and may not happen.Auction sale of 25 loans totaling approximately $3.8 million reduces less-liquid portfolio assets, with settlement expected December 2026.
Negative
- Minor pointSold pool averages 15 months delinquent, reflecting the loans’ non-performing status.
- Minor pointPreviously modified mortgages that became delinquent comprise approximately 49 percent of the aggregate pool balance.
News Explained
Alongside the sale of the 25 loans, the purchaser must honor existing loss-mitigation agreements, seek additional assistance for distressed borrowers except in limited cases, and complete any pending loss-mitigation actions.
AI-generated analysis. How Rhea-AI works. Not financial advice.
MCLEAN, Va., Oct. 28, 2026 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today announced it sold via auction 25 deeply delinquent non-performing residential first lien loans (NPLs) from its mortgage-related investments portfolio to Igloo Series VII Trust. The loans, with a balance of approximately
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 49 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 EXPO pool and bid information is summarized below:
| Description | EXPO Pool #1 |
| Unpaid Principal Balance | |
| Loan Count | 25 |
| BPO-weighted* CLTV (in %) | 48 |
| UPB-weighted CLTV (in %) | 57 |
| Average Months Delinquent | 15 |
| Average Loan Balance (in | 154 |
| Geographical Distribution | Texas |
| Winning Bidder | Igloo Series VII Trust |
| Cover Bid Price (% of UPB) (second-highest bid price) | Low-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
https://capitalmarkets.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
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
Who bought Freddie Mac’s $3.8 million non-performing loan pool, and when will it settle?
Igloo Series VII Trust won the auction for 25 loans with a balance of approximately $3.8 million, and settlement is expected in December 2026.
What borrower protections apply to Freddie Mac’s non-performing loan sale?
Purchasers must honor existing loss mitigation agreements, solicit distressed borrowers for additional assistance except in limited cases, and complete all pending loss mitigation actions. Loss mitigation includes loan modifications or other alternatives to foreclosure.
What bid price did Freddie Mac disclose for its non-performing loan auction?
The second-highest bid, called the cover bid, was in the low-mid 90s area as a percentage of unpaid principal balance. That figure describes the cover bid, not the winning bid.