Mortgage Daily

Published On: October 2, 2018

More than $500 million in loans owned by the Federal Home Loan Mortgage Corp. have been sold through the auction process. A majority of the loans have been modified and fallen delinquent again.

Freddie Mac first announced the $655 million offering last month. The loans were split into four pools and included seasoned, non-performing whole loans.

Three of four pools consisted of loans secured by geographically diverse properties. Investors were given the flexibility to bid on each pool individually or on any combination of pools.

Freddie announced Tuesday the winning bidders for the three pools: InSolve Global Credit Fund III LP, LSF10 Mortgage Holdings LLC and 1900 Capital Fund II LLC.

Included in the sale are 3,247 non-performing mortgages with an aggregate unpaid principal balance of $569 million.

“The loans have been delinquent for over two years, on average,” Freddie said. “Given the 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.”

Modified loans that again became delinquent make up around 55 percent of the loans.

The aggregate pools had a 78 percent loan-to-value ratio based on broker-price opinions.

The sale of the loans, which are currently being serviced by Specialized Loan Servicing LLC, was done with Wells Fargo Securities LLC and The Williams Capital Group LP advising Freddie.

The transaction is expected to settle in December

The loans are being sold from the McLean, Virginia-based company’s
$235 billion investment portfolio.

Bids on the fourth pool, an
Extended Timeline Pool Offering, are due by Oct. 16.

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