Pretium Mortgage Credit Partners, Upland Mortgage Acquisition Co. and Rushmore Loan Management Services are the winning bidders on four pools of nonperforming loans (NPLs) recently auctioned by Freddie Mac.
Pretium Mortgage Credit Partners was the winning bidder on a pool of 1,813 mortgages with $292.7 million in unpaid principle balance (UPB) and a second pool of 1,283 mortgages with about $220 million in UPB.
Upland Mortgage Acquisition Co. was the wining bidder on a pool of 1,113 loans with $227.3 million in UPB, and Rushmore Loan Management Services was the winning bidder on a pool of 1,115 loans with about $222.8 million in UPB.
All together, that’s about 5,364 deeply delinquent NPLs – or about $1 billion in UPB – that Freddie Mac has liquidated from its mortgage-related investments portfolio, thus reducing taxpayer exposure to these risky assets.
Mortgages that were previously modified and subsequently became delinquent comprise approximately 47.5% of the aggregate pool balance.
All four pools are geographically diverse and have an average combined loan-to-value ratio of approximately 86%, based on broker price opinion.
All of the loans are currently serviced by either Wells Fargo Bank or Ditech Financial.
Investors had the flexibility to bid on each pool individually and/or a combination of pools. All four pools were sold at a weighted average price in the mid-70s as a percent of the total UPB.
The transaction is expected to settle in December.