Freddie Mac Sells $305 Million of Seriously Delinquent Loans
MCLEAN, VA--(Marketwired - Oct 9, 2015) - Freddie Mac (OTCQB: FMCC) today announced it sold via auction 1,611 deeply delinquent non-performing loans (NPLs) serviced by JP Morgan Chase Bank, N.A. from its mortgage investment portfolio on October 7, 2015. The transaction is expected to settle in December, 2015, and servicing will be transferred post-settlement. The sale is part of Freddie Mac's Standard Pool Offerings (SPO(SM)).
These loans have been delinquent for approximately two years, on average. Given the deep delinquency status of the loans, the borrowers have likely been evaluated previously for or are already in various stages of loss mitigation, including modification or other alternatives to foreclosure, or are in foreclosure. Mortgages that were previously modified and subsequently became delinquent comprise approximately 40% of the aggregate pool balance. The aggregate pool is geographically diverse and has a loan-to-value of approximately 91, based on BPO (Broker Price Opinion).
The loans were offered as two separate pools of mortgage loans, and investors had the flexibility to bid on one or both pools, or bid on the aggregate of both pools. Pool #1 was comprised of loans with CLTV less than and equal to 110. Pool #2 is comprised of loans with CLTV greater than 110. The pools, winning bidders and cover bid prices (second highest bids) are summarized below: READ MORE