Freddie Mac Sells $130 Million of Seriously Delinquent Loans

OREANDA-NEWS. Freddie Mac (OTCQB: FMCC) today announced it sold via auction 487 deeply delinquent non-performing loans (NPLs) serviced by JP Morgan Chase Bank, N.A. from its mortgage investment portfolio on May 31, 2016. The transaction is expected to settle in August 2016 and servicing will be transferred post-settlement. Freddie Mac, through its advisors, began marketing the transaction on May 11, 2016, to potential bidders, including minority and women-owned businesses (MWOBs), non-profits, neighborhood advocacy funds and private investors active in the NPL market.

The loans have been delinquent for approximately three and half 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 27 percent of the aggregate pool balance. The aggregate pool is geographically diverse and has a loan-to-value ratio of approximately 91 percent, based on BPO (Broker Price Opinion).

The pool, winning bidder and cover bid price (second highest bid) are summarized below:

Advisors to Freddie Mac on the transaction were J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and First Financial Network Inc., a woman-owned business.