Freddie Mac Sells $1 Billion of Seriously Delinquent Loans


Freddie Mac Sells $1 Billion of Seriously Delinquent Loans

MCLEAN, VA–(Marketwired – Oct 5, 2016) –  Freddie Mac (OTCQB: FMCC) today announced it sold via auction 5,364 deeply delinquent non-performing loans (NPLs) from its mortgage-related investments portfolio. The loans are currently serviced by either Wells Fargo Bank, N.A. or Ditech Financial, LLC. The transaction is expected to settle in December 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 September 8, 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 four separate pools of geographically diverse mortgage loans. Investors had the flexibility to bid on each pool individually and/or a combination of pools. All four pools were sold at a weighted average price in the mid-70s as a percent of the total unpaid principal balance.

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 47.5 percent of the aggregate pool balance. The aggregate pool is geographically diverse and has a loan-to-value ratio of approximately 86 percent, based on Broker Price Opinion (BPO).

The pools and winning bidders are summarized below:

Description Pool #1 Pool #2 Pool #3 Pool #4
Unpaid Principal Balance $292.7 million $220.0 million $227.2 million $222.8 million
Loan Count 1813 1283 1113 1155
CLTV Range Less than 90 Less than 90 Greater than or equal to 90 and less than 110 Greater than or equal 110
BPO CLTV 71 70 99 136
Average Months Delinquent 29 21 28 29
Average Loan Balance ($000) 161.5 171.5 204.2 192.9
Geographical Distribution National National National National
Winning Bidder Pretium Mortgage Credit Partners I Loan Acquisition, LP Pretium Mortgage Credit Partners I Loan Acquisition, LP Upland Mortgage Acquisition Company II, LLC Rushmore Loan Management Services LLC
Cover Bid Price
(second-highest bid price)
Mid-$80s Mid-$80s Around $70 Mid-$40s

Advisors to Freddie Mac on the transaction were Wells Fargo Securities, LLC and First Financial Network, Inc., a woman-owned business.

Through the first half of 2016, Freddie Mac sold $5.3 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 “Freddie Mac Sells $1 Billion of Seriously Delinquent Loans”
  1. elliotnessbaum says:

    At this point in our history we all know that pretty much all of these loans circa 2005-2008,are pure make believe garbage,and every land mark case gets treated the same way,every borrower gets treated like garbage x10,so in reality not one of these garbage products has accountability.

    Why is that?Well here in the territory formerly known as The United States Of America judges and lawyers have all the power to screw us,steal our money and our property,so please don’t think that just because you read it on a blog somewhere,and even if its factual it 98% will do zero to help you get justice.

    Don’t think the show that congress and Wells Fargo have been putting on for us Consumers is anything more than just that a show.
    They have found a way to get rich,get what they all want and slowly destroy the American economy,the people,and the will to do better and share the spoils,those spoils are now reserved for a select few and they make no bones about it.
    When y’all get tired of pussy footing around and get organized 1 or 2 million bodies per state,walk in to your capital building and tell em all that they can go,that they are no longer needed,and get some balls about us.


    • Elaine Williams says:

      Here is the problem Elliot – rooted in foreclosure, in losing your home is a very deep and abiding shame. We are pretty much a collective rape victim – we know it wasn’t our fault but we are still deeply ashamed over what happened to us. We were powerless but that doesn’t matter. Most people view us as deadbeats who just wanted a free house. You can’t really talk to anyone about this – unless it has happened to them. I lost five years of my marriage, our 401k and no one in my family (I am the youngest of 9 yes NINE) is speaking to me over the loss of the family property. At the age of 61 I am living is a small house with my husband and his mother. My life is and will be fucked until the end of time. If banks like Well Fargo can still be in business despite the massive fraud they perpetrated what makes you think any of us will see justice in our lifetimes?

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