Freddie Mac announced a $628 million non-performing loan (NPL) sale through 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, (dba Shellpoint Mortgage Servicing) and Nationstar Mortgage LLC (dba RightPath Servicing).
The NPLs are being marketed through two standard pool offerings (SPO) and two extended timeline pool offerings (EXPO), which target smaller investors including non-profits and minority, women, disabled, LGBTQ+, veteran or service-disabled veteran-owned businesses.
Bids are due by Sept. 21 for the SPO pools and Oct. 19 for the EXPO pools.
All eligible bidders must be approved by Freddie Mac and successfully complete a qualification package. Bids are to be made on an all-or-none basis for any pool separately or in any combination of SPO pools together.
Advisors to Freddie Mac on the transaction are Wells Fargo Securities, LLC and First Financial Network, Inc.
Freddie Mac’s seasoned loan offerings focus on reducing less-liquid assets in the company’s mortgage-related investments portfolio through the sale of NPLs, securitizations of re-performing loans (RPLs) and structured RPL transactions. Since 2011, Freddie Mac has sold $9.7 billion of NPLs and securitized approximately $77.4 billion of RPLs.