Freddie Mac Sells $130 Million of Seriously Delinquent Loans to Goldman Sachs Subsidiary MTGLQ
MCLEAN, VA–(Marketwired – Jun 2, 2016) – Freddie Mac (OTCQB: FMCC) today announced it sold via auction 487 deeply delinquent non-performing loans (NPLs) serviced by JP Morgan Chase Bank, N.A. from its mortgage investment portfolio on May 31, 2016. The transaction is expected to settle in August 2016 and servicing will be transferred post-settlement. Freddie Mac, through its advisors, began marketing the transaction on May 11, 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 have been delinquent for approximately three and half 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 27 percent of the aggregate pool balance. The aggregate pool is geographically diverse and has a loan-to-value ratio of approximately 91 percent, based on BPO (Broker Price Opinion).
The pool, winning bidder and cover bid price (second highest bid) are summarized below:
| Description | Pool #1 |
| Unpaid Principal Balance | $130.2 million |
| Loan Count | 487 |
| CLTV Range | All |
| BPO CLTV | 90.7 |
| Average Months Delinquent | 40.5 |
| Average Loan Balance ($000) | 267.4 |
| Geographical Distribution | National |
| Winning Bidder | MTGLQ Investors, LP |
| Cover Bid Price (second-highest bid price) |
Low $70s |
Advisors to Freddie Mac on the transaction were J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and First Financial Network Inc., a woman-owned business.
Through the first quarter of 2016, Freddie Mac has sold $4.3 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 at http://www.freddiemac.com/npl/.
SOURCE: http://www.freddiemac.com
~
Debts previously “dishonored” are in default … and, cannot be sold to anyone who thereafter had authority to use the “power-of-sale” clause in the deed of trust to foreclose “non-judicially.”
Entities purchasing defaulted debts are strictly considered as “debt-collectors” and without authority to foreclose non-judicially. Debt-collectors must prove the transaction and their right to collect on it by lawsuit.
Could you elaborate Lazarus? I am in a situation where my BofA (originally Countrywide) loan was modified with the National Mortgage settlement. After a few months into the new agreement BofA neglected to remove an escrow accounting error that made my payment almost double. I continued to pay the agreed upon monthly payment. BofA was holding the payments until they matched the full amount. I spoke to every dept. at BofA to try and clear it up. NO resolution! Then a few months later my loan was sold to Selene Finance (a non bank servicer) without any of the documents relating to my history with BofA including my recent modification. Selene is claiming I owe them an absurd amount in missed payments and penalties etc. I sent them several QWR with no response. They then filed for foreclosure in SC court. I have hired my own attorney and we have filed our own suit. Any advice on dealing with mortgage “debt collectors” in court? The lawsuit was filed by the trustee of BCAT***. The trustee has since sent me a letter stating they have a minimal role in the lawsuit? None of it is sitting well with me.
So who in their right mind buys something broken? If they do how much are they paying? How would they explain to the share holders about their dissension choice, and how will that purchase enhance their ability to make money from a bad investment? LOOK everyone that reads this must be somewhat of understanding let me give you an example, “you buy a car that has a blown engine for the same price as a used car, but it shine better than the used car in the parking lot. that car has been for sale for 6 months. You replace the engine at a cost, then put a for sale sign on it in your front yard, when and how are you going to make more than you invested. This bank buying bad loans SMELLS like the fish I caught and forgot it in the trunk of my car, yup it smells even after you wash the trunk????