InSolve Global Credit Fund III LP, LSF10 Mortgage Holdings LLC and 1900 Capital Fund II LLC are the winning bidders of three pools of nonperforming loans (NPLs), totaling $569 million, recently auctioned by Freddie Mac.
The combined 3,247 delinquent loans are currently serviced by Specialized Loan Servicing LLC.
The loans have been delinquent for over two years, on average. Most of the borrowers have likely been evaluated previously for, or are already in various stages of, loss mitigation, including modification or other alternatives to foreclosure, or are in foreclosure, Freddie Mac says in a release.
Mortgages that were previously modified and subsequently became delinquent comprise approximately 55% of the aggregate pool balance.
The aggregate pool has a loan-to-value ratio of approximately 78%, based on broker price opinions.
The transaction is expected to settle in December.
The sale is part of Freddie Mac’s Standard Pool Offerings (SPO).
Bids for the upcoming Extended Timeline Pool Offering (EXPO), which is a smaller sized pool of loans, are due from qualified bidders by October 16.
To date, Freddie Mac has sold $7 billion of NPLs and transacted $43 billion of re-performing loans consisting of $27 billion via fully guaranteed PCs; $14 billion via Seasoned Credit Risk Transfer senior/sub securitizations; and $2 billion via Seasoned Loans Structured Transaction offerings.
