Freddie Mac Sells 25 Delinquent Texas Loans Worth $3.8 Million to Igloo Series VII Trust
Freddie Mac sold a $3.8 million EXPO pool of 25 deeply delinquent first-lien loans, all in Texas, to Igloo Series VII Trust. The buyer must honor existing loss mitigation agreements; settlement is expected in December.
By Gino Yatouma · 3 min read
Freddie Mac sold 25 deeply delinquent non-performing residential first-lien loans with a balance of about $3.8 million to Igloo Series VII Trust, the company announced on Wednesday, Oct. 28, 2026. The loans came from Freddie Mac's mortgage-related investments portfolio, and the transaction is expected to settle in December 2026, according to Freddie Mac's announcement.
The sale was part of Freddie Mac's Extended Timeline Pool Offering, known as EXPO, which packages smaller pools of non-performing loans. Freddie Mac said its advisors began marketing the pool on Sept. 16, 2026, to bidders active in the non-performing loan market. All 25 loans are in Texas and are currently serviced by Selene Finance LP.
Pool details
| Item | Reported value |
|---|---|
| Unpaid principal balance | $3.8 million |
| Loan count | 25 |
| Average loan balance | $154,000 |
| Average months delinquent | 15 |
| BPO-weighted CLTV | 48% |
| UPB-weighted CLTV | 57% |
| Previously modified share of pool balance | About 49% |
| Cover bid (second-highest bid) | Low-mid 90s area, % of UPB |
Source: Freddie Mac, "Freddie Mac Sells $3.8 Million in Non-Performing Loans," Oct. 28, 2026. BPO means broker price opinion. CLTV means combined loan-to-value ratio.
Freddie Mac disclosed the cover bid, which is the second-highest bid, rather than the winning price. The release does not state the winning bid. BofA Securities and First Financial Network advised Freddie Mac.
Borrower protections
Because of how long the loans have been delinquent, Freddie Mac said the borrowers have likely already been evaluated for loss mitigation, such as a modification or another foreclosure alternative, or are in foreclosure. The purchaser is required to honor existing loss mitigation agreements, solicit distressed borrowers for additional assistance except in limited cases, and make sure pending loss mitigation actions are completed. Freddie Mac publishes the servicing requirements for these sales on its seasoned loan offerings site.
For a borrower whose loan is in a sold pool, the practical change is usually a new servicer or owner after settlement. Borrowers should receive written notice of any servicing transfer and should keep copies of any existing modification or repayment agreement.
Context
This is a small transaction. Freddie Mac said that since 2011 it has sold $11.4 billion of non-performing loans and securitized about $81.7 billion of re-performing loans. The company describes these sales as a way to reduce less-liquid assets in its investments portfolio. The sale does not change the terms of Freddie Mac's single-family guarantee business or its loan purchase rules for lenders.
Cover: native data graphic by mortgage.news from figures in Freddie Mac's release.