Freddie Mac Auctions First NPL Pools of the Year Sells $341 Million NPLs via Three SPO Pools

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Freddie Mac Auctions First NPL Pools of the Year Sells $341 Million NPLs via Three SPO Pools

MCLEAN, VA--(Marketwired - Mar 19, 2018) - Freddie Mac (OTCQB: FMCC) today announced it sold via auction 2,150 deeply delinquent non-performing loans (NPLs) from its mortgage investments portfolio. The loans, totaling $341 million, are currently serviced by New Penn Financial, LLC d/b/a Shellpoint Mortgage Servicing. The transaction is expected to settle in May 2018. The sale is part of Freddie Mac's Standard Pool Offerings (SPO®). Bids for the upcoming Extended Timeline Pool Offering (EXPO), which is a smaller sized pool of loans, are due from qualified bidders by March 27, 2018. Freddie Mac, through its advisors, began marketing the transaction on February 15, 2018, to potential bidders, including minority and women-owned businesses (MWOBs), non-profits, neighborhood advocacy funds and private investors active in the NPL market.

For the SPO® offerings, the loans were offered as three separate pools of mortgage loans. Two of the three pools consist of mortgage loans secured by geographically diverse properties. The remaining pool consists solely of mortgage loans secured by properties in Chicago Cook County. Investors had the flexibility to bid on each pool individually and/or any combination of pools.

The loans have been delinquent for over two years, on average. Given the deep 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. Mortgages that were previously modified and subsequently became delinquent comprise approximately 55 percent of the aggregate pool balance. The aggregate pool has a loan-to-value ratio of approximately 80 percent, based on Broker Price Opinion (BPO).

The pools and winning bidders are summarized below:

             
Description   Pool #1   Pool #2   Pool #3
Unpaid Principal Balance   $224.7 million   $29.5 million   $86.9 million
Loan Count   1485   138   527
CLTV Range   Less than 90   Greater than or equal to 90   Greater than or equal to 90
BPO-weighted CLTV   68   126   113
Average Months Delinquent   26   43   25
Average Loan Balance ($000)   149.5   214.8   165.7
Geographical Distribution   National   IL (Chicago Cook County)   National
Winning Bidder   BlueWater Investment Holdings, LLC   MTGLQ Investors, L.P   MTGLQ Investors, L.P
Cover Bid Price
(second-highest bid price)
  $90 area   $50 area   $60 area
             

Advisors to Freddie Mac on the transaction are J.P Morgan Chase, LLC and The Williams Capital Group L.P, a minority owned business.

Freddie Mac's Seasoned Loan Offerings are focused on reducing less liquid assets in an economically sensible way from the company's mortgage investments portfolio. This includes sales of NPLs, securitizations of re-performing loans (RPL) and structured RPL transactions.

To date, Freddie Mac has sold $7 billion of non-performing loans and transacted $38 billion of RPLs consisting of (i) $27 billion via fully guaranteed PCs, (ii) $10 billion via Seasoned Credit Risk Transfer ("SCRT") senior/sub securitizations, and (iii) $1 billion via Seasoned Loan Structured Transaction ("SLST") offerings. Additional information about the company's seasoned loan offerings can be found at: http://www.freddiemac.com/seasonedloanofferings/docs/rpl_sales_guidelines_factsheets.pdf.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.

MEDIA CONTACT:
Christopher Spina
703-388-7031

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