Freddie Mac to Auction $474M in Non-Performing Loans
Event summary
- Freddie Mac will auction $474M in non-performing loans (NPLs) via five pools: four Standard Pool Offerings (SPO®) and one Extended Timeline Pool Offering (EXPO®).
- Bids are due by October 6, 2026, for SPO pools and October 23, 2026, for the EXPO pool.
- The NPLs are serviced by Select Portfolio Servicing Inc., Newrez LLC, Shellpoint Mortgage Servicing, Selene Finance LP, or Rocket Mortgage.
- Since 2011, Freddie Mac has sold $11.4B in NPLs and securitized $81.7B in re-performing loans (RPLs).
The big picture
Freddie Mac’s NPL sale is part of its broader strategy to reduce less-liquid assets in its mortgage-related investments portfolio. The transaction aligns with industry trends toward risk transfer and portfolio optimization, particularly in the wake of economic cycles. Since 2011, Freddie Mac has offloaded $11.4B in NPLs and securitized $81.7B in RPLs, reflecting a sustained focus on managing credit risk and enhancing liquidity.
What we're watching
- Portfolio Optimization
- The pace at which Freddie Mac reduces less-liquid assets in its mortgage-related investments portfolio.
- Market Demand
- Whether the $474M NPL sale attracts sufficient bidder interest, given current market conditions.
- Borrower Outcomes
- How the sale impacts borrower outcomes and community stabilization, as required by Freddie Mac’s servicing guidelines.