$1.6 Billion Transaction Features Seven Pools, Including Two Extended Timeline Pools (EXPOs) Targeting Smaller Investors
MCLEAN, VA--(Marketwired - Jan 22, 2016) - Freddie Mac (OTCQB: FMCC) today announced a $1.6 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 Nationstar Mortgage LLC.
The NPLs are being marketed via seven pools: five geographically diversified Standard Pool Offerings (SPO®) and two geographically concentrated Extended Timeline Pool Offerings (EXPO®) which targets participation by smaller investors, including non-profits and minority and women-owned businesses (MWOBs).
Bids are due from qualified bidders on February 23, 2016, for the SPO offerings and March 8, 2016, for the EXPO offerings. The sales are expected to settle in the second quarter of 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, Credit Suisse Securities LLC and The Williams Capital Group LP.
In March 2015, 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 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 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 The information could be out of date and no longer accurate.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.