Freddie Mac Launches $658 Million Re-Performing Loan Securitization
Freddie Mac announced a new milestone in its seasoned loan program: a securitization of approximately $658 million backed by re-performing loans (RPLs). The transaction is meant to add liquidity to the market while helping the company manage credit risk in a disciplined way.
What This Deal Includes
The offering blends guaranteed senior securities with non-guaranteed subordinate securities. In total, it features roughly $625 million in guaranteed certificates and $33 million in subordinate mezzanine certificates. All securities are supported by a pool of seasoned loans that are current as of the cut-off date, underscoring Freddie Mac’s confidence in the collateral behind the deal.
Inside the Loan Pool
The collateral comprises 3,762 mortgages, including fixed-rate, adjustable-rate, and step-rate loans. The pool includes loans that were modified to help borrowers avoid potential foreclosure, along with loans that were never modified. That mix is intentional: it balances borrower support with a steady payment history to promote long-term, responsible lending.
How the Loans Will Be Serviced
Newrez LLC, doing business as Shellpoint Mortgage Servicing, will service the loans in this securitization. The servicing approach prioritizes keeping borrowers in their homes when possible and supporting neighborhood stability. Those borrower retention strategies align with Freddie Mac’s mission to strengthen households and communities.
The Team Structuring the Transaction
Wells Fargo Securities and Citigroup Global Markets are serving as co-lead managers and joint bookrunners. They’re joined by co-managers Oppenheimer & Co. and R. Seelaus & Co. Together, these firms bring experience in arranging similar transactions, helping ensure a clear, reliable structure for investors.
A Record of Executing Loan Sales
Freddie Mac has built a notable track record in mortgage finance. It has sold more than $10.3 billion in non-performing loans (NPLs) and securitized about $78.6 billion in re-performing loans. These efforts demonstrate an active approach to managing mortgage credit exposure and supporting the functioning of the secondary market.
A Range of Financing Tools
Freddie Mac’s toolkit spans fully guaranteed participations (PCs), SCRT senior and subordinate securities, and structured transaction securitizations. Offering multiple product types gives the market options and helps support liquidity across different investor needs.
Freddie Mac’s Mission in Practice
At its core, Freddie Mac is focused on making home ownership attainable for families nationwide. Its work centers on liquidity, stability, affordability, and equity in the housing market. Over the years, that focus has helped millions of families buy homes or stay in them—quiet, steady work that matters to households and communities.
Looking Ahead
Freddie Mac continues to adapt to a changing economy. By developing a range of loan solutions and supporting market stability, the company aims to remain a steady presence in housing finance and a partner in sustainable home ownership.
Frequently Asked Questions
What exactly did Freddie Mac announce?
Freddie Mac announced a securitization of about $658 million backed by re-performing loans, a step intended to add market liquidity and manage credit risk.
How is the securitization structured?
The deal combines approximately $625 million in guaranteed certificates with $33 million in subordinate mezzanine certificates, all backed by seasoned loans that are current as of the cut-off date.
What loans make up the collateral pool?
The pool contains 3,762 mortgages, including fixed-rate, adjustable-rate, and step-rate loans. It includes both modified loans—designed to help borrowers facing potential foreclosure—and loans that were never modified.
Who services the loans, and what’s the focus?
Newrez LLC, d/b/a Shellpoint Mortgage Servicing, services the loans. The servicing standards emphasize borrower retention and neighborhood stability.
How does this fit Freddie Mac’s broader track record?
It builds on a history that includes selling over $10.3 billion in non-performing loans and securitizing roughly $78.6 billion in re-performing loans, alongside a range of offerings such as PCs, SCRT senior and subordinate securities, and structured transaction securitizations.
