Freddie Mac Sells $428 Million in Non-Performing Loans
The auction covers 1,968 delinquent loans, with purchasers required to honor existing borrower-assistance agreements.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Freddie Mac (FMCC) sold approximately $428 million in deeply delinquent residential mortgage loans through an auction of four pools.
The sale covers 1,968 non-performing first-lien loans, secured by properties across the country. VRMTG ACQ won pools 1–3, with unpaid principal balances of $189.0 million, $128.3 million and $71.4 million. Igloo Series VII Trust won pool 4, with $39.3 million. The transaction is expected to settle in December 2026.
Previously modified mortgages that became delinquent again represent approximately 51 percent of the aggregate pool balance. Purchasers must honor existing borrower-assistance agreements and complete pending assistance actions. Qualified bidders have until October 23, 2026, to submit bids for the separate, smaller Extended Timeline Pool Offering.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Major pointApproximately $428 million in non-performing loans sold at auction advances the reduction of less-liquid portfolio assets. 18% of market cap
Negative
- Moderate pointSettlement remains pending, with the transaction expected to settle in December 2026.
- Minor pointApproximately 51 percent of aggregate pool balance comprises previously modified mortgages that subsequently became delinquent.
- Minor pointAverage delinquency was 17, 15, 21 and 18 months for pools 1–4, respectively.
News Explained
The
AI-generated analysis. How Rhea-AI works. Not financial advice.
Awards 4 SPO Pools to 2 Winners
MCLEAN, Va., Oct. 08, 2026 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today announced it sold via auction 1,968 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® offerings were offered as four 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 51 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 | Pool #4 |
| Unpaid Principal Balance | ||||
| Loan Count | 911 | 608 | 296 | 153 |
| BPO-weighted* CLTV (in %) | 50 | 49 | 67 | 65 |
| UPB-weighted CLTV (in %) | 61 | 59 | 74 | 74 |
| Average Months Delinquent | 17 | 15 | 21 | 18 |
| Average Loan Balance (in | 207.4 | 211.1 | 241.2 | 256.9 |
| Geographical Distribution | National | National | National | National |
| Winning Bidder | VRMTG ACQ, LLC | VRMTG ACQ, LLC | VRMTG ACQ, LLC | Igloo Series VII Trust |
| Cover Bid Price (% of UPB) (second-highest bid price) | Mid 90s Area | Mid 90s Area | Low-Mid 90s Area | Mid 80s 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
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 $428 million non-performing loan pools?
VRMTG ACQ won pools 1–3, and Igloo Series VII Trust won pool 4. The pools contain 911, 608, 296 and 153 loans, respectively. Their unpaid principal balances are $189.0 million, $128.3 million, $71.4 million and $39.3 million, respectively.
What borrower-assistance requirements apply to Freddie Mac's non-performing loan buyers?
Purchasers must honor existing loss mitigation agreements, solicit distressed borrowers for additional assistance except in limited cases, and ensure all pending assistance actions are completed. Loss mitigation includes loan modifications or other alternatives to foreclosure.
Do Freddie Mac's disclosed cover bids show the winning purchase prices?
No. The disclosed cover bid prices are the second-highest bids, expressed as percentages of unpaid principal balance. They were in the Mid 90s Area for pools 1 and 2, the Low-Mid 90s Area for pool 3, and the Mid 80s Area for pool 4.