MCLEAN, VA--(Marketwired - Oct 5, 2016) - Freddie Mac (
The loans were offered as four separate pools of geographically diverse mortgage loans. Investors had the flexibility to bid on each pool individually and/or a combination of pools. All four pools were sold at a weighted average price in the mid-70s as a percent of the total unpaid principal balance.
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 47.5 percent of the aggregate pool balance. The aggregate pool is geographically diverse and has a loan-to-value ratio of approximately 86 percent, based on Broker Price Opinion (BPO).
The pools and winning bidders are summarized below:
| Description | Pool #1 | Pool #2 | Pool #3 | Pool #4 | ||||
| Unpaid Principal Balance | $292.7 million | $220.0 million | $227.2 million | $222.8 million | ||||
| Loan Count | 1813 | 1283 | 1113 | 1155 | ||||
| CLTV Range | Less than 90 | Less than 90 | Greater than or equal to 90 and less than 110 | Greater than or equal 110 | ||||
| BPO CLTV | 71 | 70 | 99 | 136 | ||||
| Average Months Delinquent | 29 | 21 | 28 | 29 | ||||
| Average Loan Balance ($000) | 161.5 | 171.5 | 204.2 | 192.9 | ||||
| Geographical Distribution | National | National | National | National | ||||
| Winning Bidder | Pretium Mortgage Credit Partners I Loan Acquisition, LP | Pretium Mortgage Credit Partners I Loan Acquisition, LP | Upland Mortgage Acquisition Company II, LLC | Rushmore Loan Management Services LLC | ||||
| Cover Bid Price (second-highest bid price) | Mid-$80s | Mid-$80s | Around $70 | Mid-$40s | ||||
Advisors to Freddie Mac on the transaction were Wells Fargo Securities, LLC and First Financial Network, Inc., a woman-owned business.
Through the first half of 2016, Freddie Mac sold $5.3 billion in NPLs as part of its strategy to reduce the less liquid assets in its mortgage-related investments portfolio. Requirements guiding the servicing of these transactions are focused on improving borrower outcomes and stabilizing communities. In April 2016, Freddie Mac's regulator, the Federal Housing Finance Agency, announced enhanced requirements for NPL sales. Additional information about the company's NPL sales is at http://www.freddiemac.com/npl/ .
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four home borrowers and is the largest source of financing for multifamily housing. Additional information is available at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog at FreddieMac.com/blog.
