Freddie Mac recently sold 88 non-performing residential first lien loans valued at $19.1 million from its mortgage-related investments portfolio to GITSIT Solutions and VRMTG ACQ, a woman-owned business.
The loans are currently serviced by Specialized Loan Servicing. The sale is part of Freddie Mac’s Extended Timeline Pool Offering (EXPO) and is expected to settle in December.
Freddie Mac, through its advisors, began marketing the transaction in late August to potential bidders, including non-profit organizations and minority, women, disabled, LGBT, 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, Freddie Mac says in a release.
Mortgages that were previously modified and subsequently became delinquent comprise approximately 33% of the pool balance.
Also, 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.
EXPO Pool #1, sold to GITSIT Solutions, has $13.4 million in unpaid principal balance (UPB) and consists of 53 loans concentrated in New York. EXPO Pool #2, sold to VRMTG ACQ, has $5.8 million in UPB and consists of 35 loans in Florida.
Photo: Mathew Schwartz
