MCLEAN, VA--(Marketwired - Dec 8, 2015) - Freddie Mac (
These loans have been delinquent for approximately three years, on average. 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 32% of the aggregate pool balance. The aggregate pool is geographically diverse and has a loan-to-value ratio of approximately 91 percent, based on BPO (Broker Price Opinion).
The loans were offered as five separate pools of mortgage loans, and investors had the flexibility to bid on one or multiple pools, or bid on the aggregate of the pools. The pools, winning bidders and cover bid prices (second highest bids) are summarized below:
Description | Pool #1 | Pool #2 | Pool #3 | Pool #4 | Pool #5 | |||||
Unpaid Principal Balance | $330.5 million | $211.3 million | $184.1 million | $214.2 million | $116.0 million | |||||
Loan Count | 1,777 | 954 | 942 | 993 | 645 | |||||
CLTV Range | Less than or equal to 90 | Greater than 90 and less than or equal to 110 | Above 110 | All | All | |||||
BPO CLTV | 72 | 99 | 134 | 91 | 105 | |||||
Average Months Delinquent | 32 | 33 | 32 | 40 | 29 | |||||
Average Loan Balance ($000) | 186.0 | 221.5 | 195.5 | 215.7 | 179.9 | |||||
Geographical Distribution | National | National | National | National | National | |||||
Winning Bidder | Pretium Mortgage Credit Partners I Loan Acquisition, LP | Pretium Mortgage Credit Partners I Loan Acquisition, LP | Rushmore Loan Management Services, LLC | 21st Mortgage Corporation | Pretium Mortgage Credit Partners I Loan Acquisition, LP | |||||
Cover Bid Price (second-highest bid price) | High $80s | High $60s | Low $50s | Low $60s | Low $60s | |||||
Freddie Mac, through its advisors, began marketing the transaction on November 9, 2015, to potential bidders, including minority and women-owned businesses (MWOBs), non-profits, neighborhood advocacy funds and private investors active in the NPL market.
Freddie Mac's regulator and conservator, the Federal Housing Finance Agency (FHFA), announced enhanced requirements for NPL sales, which include:
Advisors to Freddie Mac on the transaction were Wells Fargo Securities, JPMorgan Securities and First Financial Network, a woman-owned business.
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four home borrowers and is one of the largest sources of financing for multifamily housing. Additional information is available at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog at FreddieMac.com/blog.