Freddie Mac Sells $438 Million in Non-Performing Loans

Core Insights - Freddie Mac sold 2,201 deeply delinquent non-performing residential first lien loans (NPLs) via auction, totaling approximately $438 million, with settlement expected in December 2025 [1] - The sale is part of Freddie Mac's Standard Pool Offerings (SPO®), which includes geographically diverse mortgage loan pools [2] - Approximately 55% of the loans in the pool had previously been modified and subsequently became delinquent [3] Loan Pool Details - The loans were divided into four pools with the following characteristics: - Pool 1: Unpaid Principal of $229.4 million, 1,202 loans, average months delinquent 20, average loan balance $190.8 thousand - Pool 2: Unpaid Principal of $117.0 million, 602 loans, average months delinquent 19, average loan balance $194.3 thousand - Pool 3: Unpaid Principal of $67.3 million, 293 loans, average months delinquent 31, average loan balance $229.6 thousand - Pool 4: Unpaid Principal of $24.7 million, 104 loans, average months delinquent 19, average loan balance $237.6 thousand [4] Transaction Context - Freddie Mac's seasoned loan offerings aim to reduce less-liquid assets in its mortgage-related investments portfolio, including NPL sales and securitizations of re-performing loans (RPLs) [5] - Since 2011, Freddie Mac has sold $10.7 billion of NPLs and securitized approximately $81.3 billion of RPLs through various programs [5]