Freddie Mac Sells $667 Million NPLs

MCLEAN, VA--(Marketwired - Mar 17, 2017) -  Freddie Mac (OTCQB: FMCC) today announced it sold via auction 3,621 deeply delinquent non-performing loans (NPLs) from its mortgage investments portfolio. The loans, totaling $667 million, are currently serviced by either Nationstar Mortgage LLC or Specialized Loan Servicing LLC. The transaction is expected to settle in May 2017, and servicing will be transferred post-settlement. The sale is part of Freddie Mac's Standard Pool Offerings (SPO^®). Freddie Mac, through its advisors, began marketing the transaction on February 16, 2017, to potential bidders, including minority and women-owned businesses (MWOBs), non-profits, neighborhood advocacy funds and private investors active in the NPL market.

The loans were offered as four separate pools of geographically diverse mortgage loans. Investors had the flexibility to bid on each pool individually and/or a 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 50 percent of the aggregate pool balance. The aggregate pool is geographically diverse and has a loan-to-value ratio of approximately 89 percent, based on Broker Price Opinion (BPO).

The pools and winning bidders are summarized below:

Description		Pool #1		Pool #2		Pool #3		Pool #4
Unpaid Principal Balance		$203.0 million		$111.4 million		$171.2 million		$181.4 million
Loan Count		1,171		700		830		920
CLTV Range		Less than 90		Less than 90		Greater than or equal to 90 and less than 110		Greater than or equal  110
BPO CLTV		71		69		99		136
Average Months Delinquent		31		20		26		26
Average Loan Balance ($000)		173.3		159.1		206.3		197.2
Geographical Distribution		National		National		National		National
Winning Bidder		Pretium Mortgage Credit Partners I Loan Acquisition, LP		Pretium Mortgage Credit Partners I Loan Acquisition, LP		Upland Mortgage Acquisition Company II, LLC		Rushmore Loan Management Services LLC
Cover Bid Price