VRMTG ACQ is the winning bidder on a pool of 28 deeply delinquent non-performing residential first lien loans (NPLs) recently auctioned by Freddie Mac, as it continues to divest non-performing assets from its mortgage-related investments portfolio.
The loans have an unpaid principal balance of approximately $5.3 million. They are currently serviced by NewRez, d/b/a Shellpoint Mortgage Servicing.
The sale is part of Freddie Mac’s Extended Timeline Pool Offering (EXPO). The transaction is expected to settle in June.
Given the delinquency status of the loans, the borrowers have likely been evaluated previously for loss mitigation, including modification or other alternatives to foreclosure, or are in foreclosure.
Mortgages that were previously modified and subsequently became delinquent comprise approximately 55% of the aggregate pool balance.
Additionally, purchasers are required to honor the terms of existing loss mitigation agreements and solicit distressed borrowers for additional assistance except in limited cases and ensure all pending loss mitigation actions are completed.
Photo: Eskay Lim
