Freddie Mac Auctioning $363 Million in Nonperforming Loans

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Freddie Mac is auctioning a $363 million portfolio of non-performing loans (NPLs) – part of the company’s ongoing effort to transfer riskier assets from its balance sheet in order to protect taxpayers.

The auction of seasoned non-performing residential first lien whole loans is being offered via four pools, three of which are Standard Pool Offerings (SPO), while one is an Extended Timeline Pool Offering (EXPO), which targets participation by smaller investors, including non-profits and minority, women, disabled, LGBT, veteran or service-disabled veteran-owned businesses (MWDOBs).

The NPLs are currently serviced by NewRez LLC, d/b/a Shellpoint Mortgage Servicing.

Bids are due from qualified bidders by May 7 for the SPO pools and May 21 for the EXPO pool. 

The sales are expected to settle in July.

Bank of America Merrill Lynch and First Financial Network, Inc., a woman-owned business, are facilitating the transaction.

To date, Freddie Mac has sold $8 billion of NPLs and securitized more than $50 billion of re-performing loans consisting of $29 billion via fully guaranteed PCs, $18 billion via Seasoned Credit Risk Transfer (SCRT) senior/sub securitizations, and $3 billion via Seasoned Loans Structured Transaction (SLST) offerings.

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