Freddie Mac Auctions First NPL Pools of the Year

MCLEAN, VA--(Marketwired - Mar 19, 2018) - Freddie Mac (OTCQB: FMCC) today announced it sold via auction 2,150 deeply delinquent non-performing loans (NPLs) from its mortgage investments portfolio. The loans, totaling $341 million, are currently serviced by New Penn Financial, LLC d/b/a Shellpoint Mortgage Servicing. The transaction is expected to settle in May 2018. The sale is part of Freddie Mac's Standard Pool Offerings (SPO^®). Bids for the upcoming Extended Timeline Pool Offering (EXPO), which is a smaller sized pool of loans, are due from qualified bidders by March 27, 2018. Freddie Mac, through its advisors, began marketing the transaction on February 15, 2018, to potential bidders, including minority and women-owned businesses (MWOBs), non-profits, neighborhood advocacy funds and private investors active in the NPL market.

For the SPO^® offerings, the loans were offered as three separate pools of mortgage loans. Two of the three pools consist of mortgage loans secured by geographically diverse properties. The remaining pool consists solely of mortgage loans secured by properties in Chicago Cook County. Investors had the flexibility to bid on each pool individually and/or any combination of pools.

The loans have been delinquent for over two 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 55 percent of the aggregate pool balance. The aggregate pool has a loan-to-value ratio of approximately 80 percent, based on Broker Price Opinion (BPO).

The pools and winning bidders are summarized below:

Description		Pool #1		Pool #2		Pool #3
Unpaid Principal Balance		$224.7 million		$29.5 million		$86.9 million
Loan Count		1485		138		527
CLTV Range		Less than 90		Greater than or equal to 90		Greater than or equal to 90
BPO-weighted CLTV		68		126		113
Average Months Delinquent		26		43		25
Average Loan Balance ($000)		149.5		214.8		165.7
Geographical Distribution		National		IL (Chicago Cook County)		National
Winning Bidder		BlueWater Investment Holdings, LLC		MTGLQ Investors, L.P.		MTGLQ Investors, L.P.
Cover Bid Price