Freddie Mac has revealed who the winning bidder is on a portfolio of distressed residential loans it offered for sale just last month.
On May 11, the McLean, Virginia-based company announced plans to auction off $135 million in seasoned, non-performing mortgages.
The loans are currently included in the secondary mortgage lender’s investment portfolio, which stood at $1.9535 trillion as of April 30.
On Thursday, Freddie disclosed that MTGLQ Investors LP was the winning bidder with a cover bid price in the low $70s.
It was the second-highest bid price offered.
The unpaid principal balance of the 487 loans sold is $130.2 million.
Based on broker-price opinions, the combined loan-to-value ratio on the pool of loans is 90.7 percent.
“The loans have been delinquent for approximately three and half years, on average,” today’s announcement stated. “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 modified and subsequently became delinquent again accounted for more than a quarter of the pool balance.
Freddie expects the transaction to settle in August, while the servicing transfer will take place after the settlement.
The government-controlled enterprise reports
that it sold $4.3 billion in non-performing loans in the first quarter.
