Freddie Mac announced its first non-performing loan sale of 2018, where it is marketing about $420 million in non-performing loans.
The auction of seasoned non-performing residential whole loans held in Freddie Mac's mortgage investment portfolio is currently being serviced by Shellpoint Mortgage Servicing. It is being marketed through these four pools: three standard pool offerings and one extended timeline pool offering, which targets participation by smaller investors, including nonprofits and minority or women-owned businesses.
The GSE announced bids are due from qualified bidders on March 13, 2018, for the three standard pool offerings, and March 27, 2018, for the EXPO pool. The sales are expected to settle in May.
In order to participate, all potential bidders must be approved by Freddie Mac, and must complete a qualification package in order to access the secure data room that contains information about the NPLs.
The GSE explained the bids must 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.
JPMorgan Securities and The Williams Capital Group, a minority-owned business, served as advisors to Freddie Mac on the transaction.
Freddie Mac’s focus for these NPL sales is to reduce less liquid assets from the company’s mortgage investments portfolio. So far, the company sold a total of $7 billion in NPLs, securitized $27 billion in re-performing loans through fully guaranteed PCs and transacted $9 billion in RPLs through senior/sub securitizations or structured offerings.
