A large portfolio of distressed residential loans has found a buyer. The seller is the Federal Home Loan Mortgage Corp.
Back in late May, Freddie Mac announced that it was seeking buyers for $783 million in deeply delinquent mortgages for sale.
The loans are part of the McLean, Virginia-based company’s investment portfolio, which stood at $334 billion as of April 30.
On Tuesday, Freddie said it sold 2,879 loans with an aggregate principal balance of $706 million.
The sale involved five pools with a weighted-average price in the mid 60s.
“The loans have been delinquent for almost five years, on average,” Freddie said. “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 29 percent of the aggregate pool balance.”
The standard pool offering transaction is expected to settle in August.
While the loans are currently serviced by
Bayview Loan Servicing LLC, servicing will be transferred after the settlement.
Bank of America Merrill Lynch and The Williams Capital Group LP served as advisors.
