Freddie Mac Announces Sale of $233 Million in Non-Performing Loans

MCLEAN, Va., Sept. 4, 2024 (GLOBE NEWSWIRE) — Freddie Mac (OTCQB: FMCC) today announced it will offer approximately $233 million in non-performing loans (NPLs) for sale via auction. The NPLs offered consist of seasoned, deeply delinquent, first-tier residential loans held in Freddie Mac’s mortgage investment portfolio. The NPLs are currently serviced by Select Portfolio Servicing Inc., Newrez LLC, d/b/a Shellpoint Mortgage Servicing or Nationstar Mortgage LLC, d/b/a Rushmore Servicing.

NPLs are sold through three pools: the Standard Pool Offering (SPO)^®) and two extended schedule pool offers (EXPO^®), which are targeted at smaller investors, including nonprofits and businesses owned by minorities, women, people with disabilities, LGBTQ+ people, veterans, or service-disabled veterans (MWDOB).

Bids from qualified bidders must be submitted by September 26, 2024 for the SPO pool and by October 10, 2024 for the EXPO pools.

All qualified bidders, including private investors, MWDOBs, nonprofits, and neighborhood advocacy organizations, are encouraged to submit bids. To participate, all prospective bidders must be approved by Freddie Mac and successfully complete a qualification package to access a secure data room containing NPL information and submit a bid for the NPL pool(s). Bids are to be submitted on an all-or-nothing basis for each pool. The winning bid for each pool will be determined based on the economics of the bids, subject to meeting Freddie Mac’s internal reserve levels, as determined by Freddie Mac in its sole discretion.

Advisers to Freddie Mac on the transaction were Citigroup Global Markets Inc. and First Financial Network, Inc., a woman-owned company.

Freddie Mac’s seasoned lending offering focuses on reducing less liquid assets in the company’s mortgage investment portfolio in an economically sound manner. This includes the sale of NPLs, the securitization of re-performing loans (RPLs) and structured RPL transactions. Since 2011, Freddie Mac has sold $10.3 billion of NPLs and securitized approximately $78.6 billion of RPLs, including $30.4 billion through fully guaranteed MBS, $35.5 billion through the Seasoned Credit Risk Transfer (SCRT) program and $12.7 billion through the Seasoned Loans Structured Transaction (SLST) program. The servicing requirements for these transactions are focused on improving borrower outcomes and stabilizing communities. Additional information about Freddie Mac’s seasoned lending offering is available at
https://www.freddiemac.com/seasonedloanofferings/.

The financial and other information contained in the documents available on this site speaks only as of the date of such documents. The information may not be current or accurate. Freddie Mac does not undertake any obligation and disclaims any duty to update any information contained in such documents.

Freddie Mac’s mission is to make it possible for families nationwide to own a home. We promote liquidity, stability, affordability and equity in the real estate market through all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep a home. Learn more: Website | Consumers | X | LinkedIn | Facebook | Instagram | YouTube

MEDIA CONTACT: Fred Solomon
703-903-3861
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