Freddie Mac Sells $5.3 Million in Non-Performing Loans

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) has announced the sale of 28 deeply delinquent non-performing residential first lien loans (NPLs) to VRMTG ACQ, The transaction, valued at approximately $5.3 million, is part of Freddie Mac's Extended Timeline Pool Offering (EXPO®) and is expected to settle in June 2025.

Key details of the sale include:

• Average loan balance: $188,000
• Average delinquency: 16 months
• Geographic location: Texas
• Previously modified loans: 55% of pool balance

The sale is part of Freddie Mac's strategy to reduce less-liquid assets in its mortgage-related investments portfolio. Since 2011, the company has sold $10.4 billion of NPLs and securitized about $80.3 billion of re-performing loans through various programs.

Positive

• Sale of non-performing loans helps improve portfolio quality
• Cover bid price near 100% of unpaid principal balance indicates strong market demand
• Low combined loan-to-value ratio (CLTV) of 45-50% suggests risk exposure

Negative

• 55% of loans in the pool were previously modified and became delinquent again
• High average delinquency period of 16 months indicates significant collection challenges

MCLEAN, Va., April 14, 2025 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today announced it sold via auction 28 deeply delinquent non-performing residential first lien loans (NPLs) from its mortgage-related investments portfolio to VRMTG ACQ, LLC. The loans, with a balance of approximately $5.3 million, are currently serviced by NewRez LLC, d/b/a Shellpoint Mortgage Servicing. The sales are part of Freddie Mac’s Extended Timeline Pool Offering (EXPO^®) and the transaction is expected to settle in June 2025. Freddie Mac, through its advisors, began marketing the transaction on March 6, 2025, to potential bidders active in the NPL market.

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 EXPO pool and winning bidder is summarized below:

Description	EXPO Pool #1
Unpaid Principal Balance	$5.3 million
Loan Count	28
BPO-weighted* CLTV (in %)	45
UPB-weighted CLTV (in %)	50
Average Months Delinquent	16
Average Loan Balance (in $000s)	188
Geographical Distribution	Texas
Winning Bidder	VRMTG ACQ, LLC
Cover Bid Price (% of UPB) (second-highest bid price)	Around 100s 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 the 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 value and size of Freddie Mac's (FMCC) latest NPL sale in April 2025?

Freddie Mac sold 28 non-performing loans with a total value of $5.3 million to VRMTG ACQ,

What is the average delinquency period and loan balance for FMCC's April 2025 NPL pool?

The average delinquency period is 16 months, with an average loan balance of $188,000.

How much has Freddie Mac (FMCC) sold in NPLs since 2011?

Since 2011, Freddie Mac has sold $10.4 billion in non-performing loans (NPLs).

What percentage of FMCC's April 2025 NPL pool consists of previously modified loans?

Previously modified loans comprise approximately 55% of the aggregate pool balance.

When is the settlement date for Freddie Mac's April 2025 NPL sale?

The transaction is expected to settle in June 2025.