Freddie Mac will be conducting an auction of approximately $534 million of seasoned non-performing residential first lien loans held in its mortgage-related investments portfolio.
The NPLs, which are currently serviced by Specialized Loan Servicing LLC, are being marketed via five pools: four Standard Pool Offerings (SPO) and one 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).
Bids are due from qualified bidders by Oct. 1, 2020, for the SPO pools, and October 15, 2020, for the EXPO pool. The SPO and EXPO pools are expected to settle in December 2020.
All eligible bidders, including private investors, MWDOBs, non-profits and neighborhood advocacy organizations, are encouraged to bid. To participate, all potential bidders must be approved by Freddie Mac and successfully complete a qualification package to access the secure data room containing information about the NPLs and to bid on the NPL pools. The bids are to be made on an all-or-none basis for any pool separately or for any combination of SPO pools together. The winning bidder will be determined on the basis of the economics of the bids, subject to meeting Freddie Mac’s internal reserve levels, at Freddie Mac’s sole discretion.
Advisors to Freddie Mac on the transaction are Wells Fargo Securities LLC and First Financial Network Inc.
Additional information is available here.