Seasoned Loan Offerings
Assets in Freddie Mac seasoned loan offerings are comprised primarily of loans repurchased out of Freddie Mac's single-family guaranteed Participation Certificates (PCs), generally after a loan has become four or more months delinquent. These loans are typically retained in Freddie Mac's mortgage-related investments portfolio while servicers work with borrowers to help retain their homes, including through loan modifications. A large volume of the distressed loans in the mortgage-related investments portfolio transition to performing status as a result of the loss mitigation activities of Freddie Mac and our legacy servicers. However, some of these loans remain non-performing despite these activities.
Our seasoned loan offerings, including sales and securitizations of re-performing loans and non-performing loans, provide Freddie Mac with an effective mechanism to manage and reduce the risk associated with these loans.
Key goals of these transactions include:
- Reduce less liquid assets via economically sensible transactions
- Provide flexibility to manage market and credit risk on these assets
- Promote servicing that prioritizes non-foreclosure resolutions, including modifications
- Consider impacts to borrowers, neighborhood stability and the market
- Improve the liquidity of these less liquid assets
Freddie Mac's Seasoned Loan Offering programs include: