Recovery! Freddie Mac Sells $706 Million of Seriously Delinquent Loans


Freddie Mac Sells $706 Million of Seriously Delinquent Loans

If the loans are no longer on their books they are no longer in foreclosure right?
No wonder why foreclosure rates are down…

MCLEAN, VA–(Marketwired – Jun 21, 2016) – Freddie Mac (OTCQB: FMCC) today announced it sold via auction 2,879 deeply delinquent non-performing loans (NPLs) serviced by Bayview Loan Servicing, LLC from its mortgage-related investments portfolio. The transaction is expected to settle in August 2016, and servicing will be transferred post-settlement. The sale is part of Freddie Mac’s Standard Pool Offerings (SPO®). Freddie Mac, through its advisors, began marketing the transaction on May 25, 2016, 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 were offered as five separate pools of mortgage loans, three of them geographically diverse SPO pool offerings. The two remaining pools were New York- and New Jersey-only pools, respectively. Investors had the flexibility to bid on one or multiple pools, or bid on the aggregate of the SPO pools. All five pools were sold at a weighted average price in the mid-60s as a percent of the total unpaid principal balance.

The loans have been delinquent for almost five 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 29 percent of the aggregate pool balance. The aggregate pool is geographically diverse and has a loan-to-value ratio of approximately 92 percent, based on BPO (Broker Price Opinion).

The pools and winning bidders are summarized below:

Description Pool #1 Pool #2 Pool #3 Pool #4 Pool #5
Unpaid Principal Balance $138.1 million $189.7 million $165.4 million $90.0 million $123.1 million
Loan Count 555 629 798 364 533
CLTV Range All All Less than 90 Greater than or equal to 90 and less than 110 Greater than or equal 110
BPO CLTV 109 87 69 99 137
Average Months Delinquent 67 65 50 53 49
Average Loan Balance ($000) 248.8 301.6 207.3 247.4 230.9
Geographical Distribution NJ NY National National National
Winning Bidder LSF9 Mortgage Holdings, LLC Upland Mortgage Acquisition Company II, LLC LSF9 Mortgage Holdings, LLC LSF9 Mortgage Holdings, LLC LSF9 Mortgage Holdings, LLC

Advisors to Freddie Mac on the transaction were Bank of America Merrill Lynch and The Williams Capital Group, L.P., a minority-owned business.

Through the first quarter of 2016, Freddie Mac sold $4.3 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 [pdf] for NPL sales. Additional information about the company’s NPL sales is at



2 Responses to “Recovery! Freddie Mac Sells $706 Million of Seriously Delinquent Loans”
  1. Amy says:

    I am one of them . My loan went as well . I had tried for a loan mod for 5 years with Chase Bank , two years ago it went to M&T / Bayview Servicing . I told my rep all the issues with Chase , as I need to modify as well as assume ( my husband passed 2 yrs into trying for a lm with Chase ) The right hand and left hand at Chase never know what the other was doing !!! M&T / Bayview assured me it would be a streamlined process applying through them ….. ??? Here we are two years and two attorneys later so much for their easier , streamlined process .

  2. Hammertime says:

    Passing the buck and the fraud!

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