Re-Performing Loan MBS Offerings
As part of its portfolio management strategy, Freddie Mac started pooling Reperforming Loans (RPLs) into fully guaranteed Mortgage Backed Securities (MBS) in 2011. RPLs are single-family mortgage loans that were purchased out of the original MBS pool due to delinquency, modification, or foreclosure referral but are now performing.
Freddie Mac Retained Portfolio Loan Life Cycle
RPL 55-Day MBS Comparison
In September 2020, Freddie Mac issued its first 55-day MBS backed by RPLs, replacing the 45-day Gold PCs that were also backed by RPLs. The RPL MBS and RPL PCs differ in the following ways:
| RPL 45-Day PCs | RPL 55-Day MBS | |
|---|---|---|
| Dates Issued | 2011 - 2018 | 2020 - Present |
| Pool Types | R: Reinstated M: Modified Fixed Rate H: Modified Step Rate |
R: Reinstated M: Modified Fixed Rate |
| Prefixes | R0, MA, MB, HA, HB | 4I, 4J, 4K, 4E, 4F, 4G, 4H |
| Payment Delay | 45-day | 55-day |
| Delinquency Criteria | C4 to C6+ | Generally, C4 to C6+ |
| TBA Eligibility | No | No |
Product Overview
- Guaranteed Freddie Mac 55-day MBS backed exclusively by RPLs (R- and M- Pools)
- Pool level disclosures have been expanded upon from typical Freddie Mac 55-Day MBS to include updated credit scores and loan-to-value ratios, modification details, and up to 3 years of aggregate payment history as of issuance.
- Non TBA-eligible
- Allow Freddie Mac to transfer significant market risk to third party investors, primarily through securitization of the MBS into Freddie Mac REMICs
Freddie Mac's RPL MBS include:
- Reinstated MBS (“R-Pools”):
Freddie Mac 55-day MBS backed by non-modified fixed rate loans that were previously delinquent and have been reinstated. The loans generally have 4+ months of clean payment history prior to issuance, but pools may contain reinstated loans that are only one-month current. Reinstated loans will be pooled into different prefixes based on their term:
| Prefix | Pool Number Range | Description |
|---|---|---|
| 4I | RL2000-RL2999 | 30 Year Reinstated |
| RO3000-RO3999 | 30 Year Reinstated (1+ Months Clean Payment History) | |
| 4J | RL3000-RL3999 | 20 Year Reinstated |
| RO4000-RO4499 | 20 Year Reinstated (1+ Months Clean Payment History) | |
| 4K | RL4000-RL4999 | 15 Year Reinstated |
| RO4500-RO4999 | 15 Year Reinstated (1+ Months Clean Payment History) |
- Modified Fixed Rate MBS (“M-Pools”):
Freddie Mac 55-day MBS backed by modified fixed rate loans that were previously delinquent. The loans generally have 6+ months of clean payment history prior to issuance, but pools may contain loans that are only one-month current. Modified loans will be pooled into different prefixes depending on their term:
| Prefix | Pool Number Range | Description |
|---|---|---|
| 4E | RK8000-RK8999 | 40 Year Modified |
| RO0000-RO0999 | 40 Year Modified (1+ Months Clean Payment History) | |
| 4F | RK9000-RK9999 | 30 Year Modified |
| RO1000-RO1999 | 30 Year Modified (1+ Months Clean Payment History) | |
| 4G | RL0000-RL0999 | 20 Year Modified |
| RO2000-RO2499 | 20 Year Modified (1+ Months Clean Payment History) | |
| 4H | RL1000-RL1999 | 15 Year Modified |
| RO2500-RO2999 | 15 Year Modified (1+ Months Clean Payment History) |
Additional information can be found on Freddie Mac's Mortgage Securities page.