Freddie Mac sells $ 1.2 billion worth of NPL
MCLEAN, Va., Oct. 19, 2021 (GLOBE NEWSWIRE) – Freddie Mac (OTCQB: FMCC) today announced that it has auctioned 7,186 non-performing senior residential loans (NPLs) from its portfolio of mortgage-related investments . The loans, with a balance of approximately $ 1.2 billion, are currently managed by Specialized Loan Servicing LLC, Select Portfolio Servicing, Inc. and NewRez LLC, d / b / a Shellpoint Mortgage Servicing. The transaction is expected to be settled in December 2021. The sale is part of Freddie Mac’s Standard Pool Offerings (SPOÂ®). Freddie Mac, through his advisers, began marketing the transaction on September 16, 2021 to potential bidders, including nonprofits and Veterans Owned Businesses (MWDOBs), human rights advocacy organizations. neighborhoods and private investors active in the non-performing loan market. Bids for the next Extended Schedule Pool (EXPO) offering, which is a smaller loan pool, must be submitted by qualified bidders by November 16, 2021.
For the SPOÂ® On offerings, the loans were offered in the form of four distinct groups of mortgages. The four pools are made up of mortgages secured by geographically diverse properties. Investors had the option of bidding on each pool individually and / or on any combination of pools.
Given the delinquent state of the loans, borrowers have likely been previously assessed for loss mitigation, including modification or other alternatives to foreclosure, or are in foreclosure. Mortgages that have been modified before and subsequently become in arrears represent approximately 64% of the total pool balance. In addition, buyers are required to honor the terms of existing loss mitigation agreements and seek additional assistance from distressed borrowers, except in limited cases, and ensure that all mitigation measures ongoing losses are carried out.
The SPO pools and successful bidders are summarized below:
|The description||Pool # 1||Pool # 2||Pool # 3||Pool # 4|
|Balance of unpaid capital||$ 320.1 million||$ 503.6 million||$ 161.8 million||$ 197.2 million|
|Number of loans||1989||2808||862||1527|
|BPO weighted CLTV * (in%)||66||42||68||64|
|Average number of months overdue||23||24||34||36|
|Average loan balance (in thousands of dollars)||160.9||179.3||187.7||129.2|
|Winning bidder||VRMTG ACQ, LLC||Truman 2021 SC9, LLC||VRMTG ACQ, LLC||MCLP Asset Company, Inc.|
|Price of the cover offer (% of the UPB)
(second highest bid price)
|100 zone||Low-Medium 110s||Mid 100s||Low-mid 90s|
* Broker Price Reviews (BPO)
Freddie Mac’s advisers on the transaction are Citigroup Global Markets Inc and First Financial Network, Inc., a women-owned company.
Freddie Mac’s seasoned loan offerings are focused on reducing less liquid assets from the company’s mortgage-related investment portfolio in an economically reasonable manner. This includes NPL sales, reproductive loan securitizations (RPL) and structured RPL transactions.
To date, Freddie Mac has sold over $ 8 billion of NPL and securitized approximately $ 75 billion of RPL, including $ 30 billion through fully secured PCs, $ 33 billion through senior / subtitles securitizations of Credit Risk Transfer (SCRT) and over $ 11 billion through seasonal loans. Structured Transaction Offers (SLST). The requirements guiding the servicing of these transactions focus on improving borrower outcomes and stabilizing communities. Additional information on Freddie Mac’s seasoned loan offerings can be found at http://www.freddiemac.com/seasonedloanofferings/
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our inception by Congress in 1970, we’ve made housing more accessible and affordable for buyers and renters in communities across the country. We are building a better housing finance system for buyers, tenants, lenders and taxpayers. Learn more on FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.
MEDIA CONTACT: Fred Solomon