Freddie Mac is putting some of the residential loans it owns up for bid. Seven pools are involved in the sale.
The transaction includes $1.6 billion in non-performing home loans that are serviced by Nationstar Mortgage LLC.
It is the first offering for a sale of non-performing loans this year by the McLean, Virginia-based secondary lender.
Freddie said the home loans are from its investment portfolio, which was last reported at $345 billion as of Nov. 30.
Seven pools that the loans are being marketed under include
five geographically diversified standard pool offerings and two geographically concentrated extended time-line pool offerings targeted at smaller investors.
“The winning bidder will be determined on the basis of economics, subject to meeting Freddie Mac’s internal reserve levels,” the announcement said. “To participate, all potential bidders are required to be approved by Freddie Mac to access the secure data room containing information about the NPLs and to bid on the NPL pool.”
Bids on the standard pool offerings are due by Feb. 23, while bids on the extended time line offerings are due by March 8.
The sales are expected to settle in the second quarter.
