MCLEAN, VA--(Marketwired - Feb 17, 2017) - Freddie Mac (OTCQB: FMCC) announced today a $759 million non-performing loan (NPL) transaction, an auction of seasoned non-performing residential whole loans held in Freddie Mac's mortgage investment portfolio. The NPLs are currently serviced by Nationstar Mortgage LLC or Specialized Loan Servicing LLC. This is Freddie Mac's second multi-servicer NPL transaction.
The NPLs are being marketed via five pools: four Standard Pool Offerings (SPO®) and one Extended Timeline Pool Offering (EXPO®) which targets participation by smaller investors, including non-profits and minority and women-owned businesses (MWOBs).
Bids are due from qualified bidders on March 14, 2017, for the SPO pools and March 28, 2017, for the EXPO pool. The sales are expected to settle in May 2017.
All eligible bidders, including private investors, MWOBs, non-profits and neighborhood advocacy funds are encouraged to bid. To participate, all potential bidders are required to be approved by Freddie Mac and must successfully complete a qualification package to access the secure data room containing information about the NPLs and to bid on the NPL pool(s). The winning bidder will be determined on the basis of economics, subject to meeting Freddie Mac's internal reserve levels.
Advisors to Freddie Mac on the transaction are Wells Fargo Securities, LLC and First Financial Network, Inc., a woman-owned business.
Freddie Mac's Seasoned Loan Offerings are focused on reducing less liquid assets in an economically sensible way from the company's mortgage investments portfolio. This includes sales of NPLs, securitizations of re-performing loans (RPL) and structured RPL transactions. To date, Freddie Mac has sold $7 billion in NPLs, securitized $26 billion in RPLs and transacted $1 billion in structured offerings. Requirements guiding the servicing of these transactions are focused on improving borrower outcomes and stabilizing communities. Additional information about the company's seasoned loan offerings is at http://www.freddiemac.com/seasonedloanofferings/index.html.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.