Freddie Mac has continued its strategy of reducing its investment portfolio with the sale of more than $1 billion in distressed mortgages.
The secondary lender announced Tuesday that it successfully auctioned off
deeply delinquent non-performing residential loans on Friday.
Freddie
said that the loans, which are being serviced by Wells Fargo Bank, N.A., have been delinquent for an average of three years.
The McLean, Virginia-based company originally started marketing the loans on Nov. 9 in seven pools for $1.2 billion. However, the sale consisted of just five pools for $1.1 billion.
The 5,311 mortgages have a weighted-average loan-to-value ratio of 91 percent based on broker price opinions.
Loans included in the sale are from Freddie’s investment portfolio, which stood at $356 billion as of Oct. 31.
The successful bidders in the sales were Pretium Mortgage Credit Partners I Loan Acquisition LP, which picked up three pools; Rushmore Loan Management Services LLC, which is buying one pool; and 21st Mortgage Corp., which is acquiring one pool.
“The transaction is expected to settle in February 2015, and servicing will be transferred post-settlement,” the announcement stated. “The sale is part of Freddie Mac’s Standard Pool Offerings.”
