More than $1 billion in distressed Federal Home Loan Mortgage Corp. home loans are being marketed for sale.
In all, $1.2 billion in deeply delinquent, non-performing Freddie Mac residential loans are being auctioned off.
The mortgages, which are being offered through seven pools, are being serviced by Wells Fargo Bank, N.A.
Freddie is selling the loans from its investment portfolio, which stood at $367 billion as of Sept. 30.
It’s the eighth such offering this year for the secondary lender.
Five of the pools are
geographically diversified Standard Pool Offerings. Bids from qualified bidders are due by Dec. 2 for these pools.
The other two pools are geographically concentrated Extended Time-line Pool Offerings that target participation by smaller investors including non-profits and minority and women-owned businesses.
Bids for these pools are due by Dec. 16.
“The winning bidder will be determined on the basis of economics, subject to meeting Freddie Mac’s internal reserve levels,” the announcement stated. “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.”
Freddie said it is being advised by
Wells Fargo Securities, JPMorgan Securities and First Financial Network Inc.
The McLean, Virginia-based company expects the sales to settle in the first-quarter 2016.
