SOURCE: Freddie Mac

Freddie Mac

November 09, 2015 17:05 ET

Freddie Mac Announces Eighth NPL Transaction of 2015

$1.2 Billion Transaction Features Seven Pools, Including Two Extended Timeline Pools (EXPOs) Targeting Smaller Investors

MCLEAN, VA--(Marketwired - Nov 9, 2015) - Freddie Mac (OTCQB: FMCC) today announced a $1.2 billion non-performing loan (NPL) transaction, an auction of deeply delinquent loans held in Freddie Mac's mortgage investment portfolio. The NPLs are currently serviced by Wells Fargo Bank, N.A.

The NPLs are being marketed via seven pools: five geographically diversified Standard Pool Offerings (SPOSM) and two geographically concentrated Extended Timeline Pool Offerings (EXPOSM), which targets participation by smaller investors, including non-profits and minority and women-owned businesses (MWOBs). Bids are due from qualified bidders on December 2, 2015 for the SPO offerings and December 16, 2015 for the EXPO offerings. The sales are expected to settle in the first quarter of 2016.

All eligible bidders, including private investors, MWOBs, non-profits and neighborhood advocacy funds are encouraged to bid. The winning bidder will be determined on the basis of economics, subject to meeting Freddie Mac's internal reserve levels. To participate, all potential bidders are required to be approved by Freddie Mac to access the secure data room containing information about the NPLs and to bid on the NPL pool.

Advisors to Freddie Mac on the transaction are Wells Fargo Securities, JPMorgan Securities and First Financial Network, Inc., a WOB (Women-Owned Business).

Additional information about the company's NPL sales is at http://www.freddiemac.com/npl/.

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four home borrowers and is one of the largest sources of financing for multifamily housing. Additional information is available at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog