Nearly $300 million in re-performing and moderately delinquent single-family mortgages have been sold with a securitization to follow.
The transaction involves 1,262 Freddie Mac residential loans that have an aggregate unpaid principal balance of $292 million.
Marketing of the loans began on May 17, and an auction followed. The winning bidder for the loans was Towd Point Master Funding LLC.
The
combined loan-to-value ratio on the loans, which are being serviced by Select Portfolio Servicing Inc., is 101 percent based on broker price opinions.
“The collateral is comprised of fixed- and step-rate modified seasoned loans,” Freddie stated in a news release Tuesday. “These loans were modified to assist borrowers who were at risk of foreclosure to help them keep their homes.”
The transaction is expected to settle in July. After that, the loans will be securitized. Freddie will guarantee and purchase the senior tranche of the securitization, while Towd Point will initially retain the first loss subordinate tranche.
It’s the second seasoned loan structured transaction
for McLean, Virginia-based Freddie. The secondary lender is selling the loans from its investment portfolio, which was previously reported at $290 billion as of April 30.
Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC and CastleOak Securities LP served as advisors to Freddie on this transaction.
