Freddie Mac Announces $1.3 billion NPL Sale

Freddie Mac Announces $1.3 billion NPL Sale

Written by Customer Service on . Posted in Public Companies.

Includes two Extended Timeline Pool Offerings Targeting Smaller Investors

MCLEAN, Va., Sept. 17, 2021 (GLOBE NEWSWIRE) — Freddie Mac (OTCQB: FMCC) announced today an approximate $1.3 billion non-performing loan (NPL) sale, via an auction of seasoned non-performing residential first lien loans held in Freddie Mac’s mortgage-related investments portfolio. The NPLs are currently serviced by Specialized Loan Servicing LLC, Select Portfolio Servicing, Inc., and NewRez LLC, d/b/a Shellpoint Mortgage Servicing.

The NPLs are being marketed via six pools: four Standard Pool Offerings (SPO®) and two Extended Timeline Pool Offerings (EXPO®), which target participation by smaller investors, including non-profits and Minority, Women, Disabled, LGBT, Veteran or Service-Disabled Veteran-Owned Businesses (MWDOBs).

Bids are due from qualified bidders by October 14, 2021 for the SPO pools, and November 16, 2021 for the EXPO pools.

All eligible bidders, including private investors, MWDOBs, non-profits and neighborhood advocacy organizations are encouraged to bid. To participate, all potential bidders must be approved by Freddie Mac and successfully complete a qualification package to access the secure data room containing information about the NPLs and to bid on the NPL pool(s). The bids are to be made on an all-or-none basis for any pool separately or for any combination of SPO pools together. The winning bidder for each pool will be determined on the basis of the economics of the bids, subject to meeting Freddie Mac’s internal reserve levels, at Freddie Mac’s sole discretion.

Advisors to Freddie Mac on the transaction are Citigroup Global Markets Inc. and First Financial Network, Inc., a woman-owned business.

Freddie Mac’s seasoned loan offerings focus on reducing less-liquid assets in the company’s mortgage-related investments portfolio in an economically sensible way. This includes sales of NPLs, securitizations of re-performing loans (RPLs) and structured RPL transactions. To date, Freddie Mac has sold $8.7 billion of NPLs and securitized approximately $74.2 billion of RPLs consisting of $30.4 billion via fully guaranteed PCs, $32.3 billion via the Seasoned Credit Risk Transfer (SCRT) program, and $11.5 billion via the Seasoned Loans Structured Transaction (SLST) program. Requirements guiding the servicing of these transactions are focused on improving borrower outcomes and stabilizing communities. Additional information about Freddie Mac’s seasoned loan offerings is available at http://www.freddiemac.com/seasonedloanofferings/

The financial and other information contained in the documents that may be accessed on this page speaks only as of the date of those documents. The information could be out of date and no longer accurate. Freddie Mac undertakes no obligation, and disclaims any duty, to update any of the information in those documents.

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: Fred Solomon
703-903-3861
Frederick_Solomon@freddiemac.com

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