Freddie Mac is conducting an approximate $628 million non-performing loan (NPL) sale, via an auction of seasoned non-performing residential first-lien loans held in Freddie Mac’s mortgage-related investments portfolio. The NPLs are currently serviced by Specialized Loan Servicing LLC, Select Portfolio Servicing Inc., NewRez LLC d/b/a Shellpoint Mortgage Servicing or Nationstar Mortgage LLC d/b/a RightPath Servicing.
The NPLs are being marketed via four pools: two Standard Pool Offerings (SPO) and two Extended Timeline Pool Offerings (EXPO), which target participation by smaller investors, including non-profits and minority, women, disabled, LGBTQ+, veteran or service-disabled veteran-owned businesses (MWDOBs).
Bids are due from qualified bidders by September 21, 2023 for the SPO pools, and October 19, 2023 for the EXPO pools.
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 pool(s).
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 for each pool 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., a woman-owned business.
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