Freddie Mac sells $438 million in non-performing loans via auction

MCLEAN, Va. - Freddie Mac (OTCQB:FMCC), a prominent player in the Financial Services industry with a market capitalization of $34.4 billion, announced Tuesday it has sold 2,201 deeply delinquent non-performing residential first lien loans (NPLs) with a balance of approximately $438 million through an auction. The company’s stock has shown remarkable strength this year, delivering a 213% return year-to-date according to InvestingPro data.

The transaction, expected to settle in December 2025, is part of Freddie Mac’s Standard Pool Offerings (SPO) program. With a strong current ratio of 105.05 and annual revenue of $22.97 billion, the company maintains robust financial metrics according to InvestingPro analysis. The loans are currently serviced by Select Portfolio Servicing Inc., NewRez LLC, Selene Finance LP, and Nationstar Mortgage LLC.

The NPLs were divided into four pools of mortgage loans secured by geographically diverse properties. RCF II Loan Acquisition, LP won the bidding for Pools #1 and #2, which contain loans with unpaid principal balances of $229.4 million and $117.0 million respectively. VRMTG ACQ, LLC secured Pool #3 with $67.3 million in loans, while Residential Credit Opportunity IX, LLC won Pool #4 with $24.7 million in loans.

According to Freddie Mac, approximately 55 percent of the aggregate pool balance consists of previously modified mortgages that subsequently became delinquent. The average months of delinquency across the pools ranged from 19 to 31 months.

Purchasers must honor existing loss mitigation agreements and solicit distressed borrowers for additional assistance in most cases. They must also ensure all pending loss mitigation actions are completed.

BofA Securities, Inc. and First Financial Network, Inc. served as advisors to Freddie Mac on the transaction.

The company stated that since 2011, it has sold $10.7 billion of NPLs and securitized approximately $81.3 billion of re-performing loans through various programs.

Freddie Mac noted in its press release that its seasoned loan offerings aim to reduce less-liquid assets in its mortgage-related investments portfolio in an economically sensible way.

In other recent news, Freddie Mac reported a slight decrease in mortgage rates, with the 30-year fixed-rate mortgage averaging 6.27%, down from 6.30% the previous week. This marks a decrease from the 6.44% recorded a year ago. Similarly, the 15-year fixed-rate mortgage saw a marginal decline to 5.52% from 5.53% last week. In addition to these developments, Freddie Mac announced a fixed-price cash tender offer to purchase several Structured Agency Credit Risk (STACR) Notes. This tender offer covers multiple classes of STACR Notes, with Wells Fargo Securities, LLC and Cantor Fitzgerald & Co. acting as lead dealer managers. CastleOak Securities, L.P. is serving as co-dealer manager for this transaction. These recent developments reflect ongoing changes in mortgage rates and Freddie Mac’s strategic financial maneuvers.

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