More than a billion dollars in severely distressed agency mortgages are being auctioned off to the highest bidder.
A standard pool offering transaction involves $1.2 billion in distressed Federal Home Loan Mortgage Corp. loans that are deeply delinquent and non-performing.
The offering reportedly features five
geographically diverse pools of loans that are being offered through an auction process.
In its announcement, Freddie Mac said the loans are currently serviced by Ocwen Loan Servicing LLC.
McLean, Virginia-based Freddie is selling the loans from its investment portfolio, which was last reported at $383 billion as of June 30.
Bids are being taken from eligible bidders including
private investors, minority- and women-owned businesses, non-profits and neighborhood advocacy funds.
“The winning bidder will be determined on the basis of economics, subject to meeting Freddie Mac’s internal reserve levels,” the statement 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.”
It’s the sixth non-performing loan auction this year for the secondary lender.
Bids are due by Sept. 9, and the settlement date is projected to be in October.
More information about Freddie’s non-performing pool sales is online at www.freddiemac.com/npl/.
Emails can be sent to [email protected].
