More than $1 billion in government-sponsored enterprise mortgages that are not performing are being offered for sale to the highest bidder.
The offering includes $1.1 billion in whole non-performing residential loans that are owned by the Federal Home Loan Mortgage Corp.
Five pools being offered for sale include four standard pool offerings and one extended pool offering that is targeted at smaller investors.
The loans being sold are currently held in Freddie Mac’s investment portfolio,
which was last reported at $319 billion as of July 31.
According to the McLean, Virginia-based secondary mortgage lender, the loans are currently being serviced by Ditech Financial LLC and Wells Fargo Bank, N.A.
It’s the first-ever multi-servicer non-performing loan sale by Freddie.
Bids are due on the standard pool offerings by Sept. 29, while bids on the extended timeline offering are due by Oct. 13.
The sales are expected to settle in December.
Wells Fargo Securities LLC and First Financial Network Inc. are serving as advisors to Freddie on the transaction.
