Freddie Mac Sells $13.9 Million in Non-Performing Loans

Freddie Mac Sells $13.9 Million in Non-Performing Loans

Benzinga
October 16, 2024

MCLEAN, Va., Oct. 16, 2024 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB:FMCC) today announced it sold via auction 57 deeply delinquent non-performing residential first lien loans (NPLs) from its mortgage-related investments portfolio to Residential Credit Opportunities X, LLC. The loans, with a balance of approximately $13.9 million, are currently serviced by Select Portfolio Servicing Inc. The sales are part of Freddie Mac's Extended Timeline Pool Offerings (EXPO) and the transactions are expected to settle in December 2024. Freddie Mac, through its advisors, began marketing the transactions on September 3, 2024, to potential bidders, including non-profit organizations and Minority, Women, Disabled, LGBTQ+, Veteran or Service-Disabled Veteran-Owned Businesses (MWDOBs), neighborhood advocacy organizations and private investors 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 66 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 pools and winning bidders are summarized below:

Description

EXPO Pool #1

EXPO Pool #2

Unpaid Principal Balance

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