$1.1 Billion Transaction Features Five Pools, Including an Extended Timeline Pool Targeting Smaller Investors
MCLEAN, VA--(Marketwired - Sep 9, 2016) - Freddie Mac (OTCQB: FMCC) today announced a $1.1 billion non-performing loan (NPL) transaction, an auction of seasoned non-performing residential whole loans held in Freddie Mac's mortgage investment portfolio. The NPLs are currently serviced by Wells Fargo Bank, N.A. or Ditech Financial LLC.
The NPLs are being marketed via five pools: four Standard Pool Offerings (SPO®) and one Extended Timeline Pool Offering (EXPO®) which targets participation by smaller investors, including non-profits and minority and women-owned businesses (MWOBs).
Bids are due from qualified bidders on September 29, 2016, for the SPO offerings and October 13, 2016, for the EXPO offering. The sales are expected to settle in December 2016.
All eligible bidders, including private investors, MWOBs, non-profits and neighborhood advocacy funds are encouraged to bid. The winning bidder will be determined on the basis of economics, subject to meeting Freddie Mac's internal reserve levels. To participate, all potential bidders are required to be approved by Freddie Mac to access the secure data room containing information about the NPLs and to bid on the NPL pool.
Advisors to Freddie Mac on the transaction are Wells Fargo Securities, LLC and First Financial Network, Inc., a woman-owned business.
Through the first half of 2016, Freddie Mac has sold $5.3 billion in NPLs as part of its strategy to reduce the less liquid assets in its mortgage investment 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 pdf for NPL sales. Additional information about the company's NPL sales is available 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 approximately one in four home borrowers and is one of the largest sources of financing for multifamily housing. Additional information is available at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.
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 does not undertake an obligation, and disclaims any duty, to update any of the information in those documents. Freddie Mac's future performance, including financial performance, is subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect the company's future results are discussed more fully in our reports filed with the SEC.