MCLEAN, Va., March 29, 2018 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB:FMCC) today announced it sold via auction 113 deeply delinquent non-performing loans (NPLs) serviced by New Penn Financial, LLC d/b/a Shellpoint Mortgage Servicing to VRMTG ACQ, LLC, a minority woman-owned business. The sale is part of Freddie Mac’s Extended Timeline Pool Offering (EXPO®) and the transaction is expected to settle in May 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.
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 65 percent of the pool balance. The pool is geographically diverse and has a loan-to-value ratio of approximately 113 percent, based on Broker Price Opinion (BPO).
The pool and winning bidder is summarized below:
| Description |
Pool #1 |
| Unpaid Principal Balance |
$22.4 million |
| Loan Count |
113 |
| CLTV |
Greater than or equal to 90 |
| BPO CLTV |
113 |
| Average Months Delinquent |
25 |
| Average Loan Balance ($000) |
$189.3 |
| Geographical Distribution |
National |
| Winning Bidder |
VRMTG ACQ, LLC |
Cover Bid Price
(second-highest bid price) |
$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
Source: Freddie Mac
