A sale of distressed residential loans by the Federal Home Loan Mortgage Corp. was the first to be sold to a non-profit buyer.
The McLean, Virginia-based company said Monday that it sold 103 residential loans for $18 million through the auction process.
According to Freddie Mac, the loans are deeply delinquent and non-performing. They’ve been delinquent an average of three years.
“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,” the announcement said.
The loans are currently in Freddie’s investment portfolio, which stood at $356 billion as of Oct. 31.
The buyer in the Dec. 18 transaction was Community Loan Fund of New Jersey Inc.
Freddie expects to settle the deal in February 2016.
Once the settlement is done, servicing will be transferred from Wells Fargo Bank, N.A.
The sale is part of Freddie Mac’s Extended Timeline Pool Offerings, or EXPO.
