Freddie Mac Sells $438 Million in Non-Performing Loans

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) sold 2,201 deeply delinquent first‑lien residential loans with an unpaid principal balance of about $438 million via four SPO pools; the auction began marketing on Sept 25, 2025 and is expected to settle in Dec 2025. Bids for a related EXPO pool are due Oct 30, 2025. Pools are geographically national; Pool unpaid balances range from $24.7M to $229.4M. Approximately 55% of aggregate UPB were previously modified then re‑delinquent. Winning bidders include RCF II Loan Acquisition, VRMTG ACQ, and Residential Credit Opportunity IX.

Positive

• Sale of $438M in NPLs reduces less‑liquid assets
• Transaction expected to settle Dec 2025
• Diversified pools: four pools totaling 2,201 loans

Negative

• 55% of UPB were previously modified and re‑delinquent
• Pool 3 average delinquency of 31 months
• Cover bids ranged to mid‑90s, implying potential sale discounts

News Market Reaction

+9.74%

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+9.74% News Effect

On the day this news was published, FMCC gained 9.74%, reflecting a notable positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Awards 4 SPO Pools to Three Winners

MCLEAN, Va., Oct. 21, 2025 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today announced it sold via auction 2,201 deeply delinquent non-performing residential first lien loans (NPLs) from its mortgage-related investments portfolio. The loans, with a balance of approximately $438 million, are currently serviced by Select Portfolio Servicing Inc., NewRez LLC, d/b/a Shellpoint Mortgage Servicing, Selene Finance LP, and Nationstar Mortgage LLC, d/b/a Rushmore Servicing. The transaction is expected to settle in December 2025. The sale is part of Freddie Mac’s Standard Pool Offerings (SPO^®). Freddie Mac, through its advisors, began marketing the transaction on September 25, 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 October 30, 2025.

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 55 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	$ 229.4 million	$ 117.0 million	$ 67.3 million	$ 24.7 million
Loan Count	1202	602	293	104
BPO-weighted* CLTV (in %)	45	46	63	57
UPB-weighted CLTV (in %)	55	56	69	64
Average Months Delinquent	20	19	31	19
Average Loan Balance (in $000s)	190.8	194.3	229.6	237.6
Geographical Distribution	National	National	National	National
Winning Bidder	RCF II Loan Acquisition, LP	RCF II Loan Acquisition, LP	VRMTG ACQ, LLC	Residential Credit Opportunity IX, LLC
Cover Bid Price (% of UPB) (second-highest bid price)	Low-Mid 100s Area	Low-Mid 100s Area	Low 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 $10.7 billion of NPLs and securitized approximately $81.3 billion of RPLs consisting of $30.4 billion via fully guaranteed MBS, $37.6 billion via the Seasoned Credit Risk Transfer (SCRT) program, and $13.3 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 did Freddie Mac (FMCC) sell on October 21, 2025?

Freddie Mac sold 2,201 non‑performing first‑lien loans with ~$438M UPB across four SPO pools.

When will the FMCC NPL sale settle?

The transaction is expected to settle in December 2025.

Which bidders won Freddie Mac's SPO pools in the October 2025 auction?

Winning bidders listed are RCF II Loan Acquisition, VRMTG ACQ, and Residential Credit Opportunity IX.

How much of the Freddie Mac (FMCC) pool balance was previously modified?

About 55% of the aggregate unpaid principal balance were previously modified and became delinquent.

What are the key pool metrics for FMCC's October 2025 sale?

Pools ranged from $24.7M to $229.4M UPB; average delinquency up to 31 months.

When are bids due for Freddie Mac's related EXPO offering (FMCC)?

Bids for the EXPO offering are due by October 30, 2025 from qualified bidders.