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:

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:

• 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:

Additional information can be found on Freddie Mac's Mortgage Securities page.