Freddie Mac recently auctioned 57 deeply delinquent non-performing residential first lien loans (NPLs) with a balance of approximately $13.9 million from its mortgage-related investments portfolio.
The loans were sold in two pools of 32 and 25 to Residential Credit Opportunities X, LLC.
The sales are part of Freddie Mac’s Extended Timeline Pool Offerings (EXPO).
The transactions are expected to settle in December.
Freddie Mac began marketing the transactions on September 3 to potential bidders, including non-profit organizations and Minority, Women, Disabled, LGBTQ+, Veteran or Service-Disabled Veteran-Owned Businesses (MWDOBs), neighborhood advocacy organizations and private investors active in the NPL market.
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 66 percent 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.
Advisors to Freddie Mac on the transaction are Citigroup Global Markets Inc. and First Financial Network, Inc., a woman-owned business.
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