Freddie Mac Announces First NPL Transaction of 2016
$1.6 Billion Transaction Features Seven Pools, Including Two Extended Timeline Pools (EXPOs) Targeting Smaller Investors
Freddie Mac (OTCQB: FMCC) today announced a $1.6 billion non-performing loan (NPL) transaction, an auction of seasoned non-performing residential whole loans held in Freddie Mac's mortgage investment portfolio. The NPLs are currently serviced by Nationstar Mortgage LLC.
The NPLs are being marketed via seven pools: five geographically diversified Standard Pool Offerings (SPO®) and two geographically concentrated Extended Timeline Pool Offerings (EXPO®) which targets participation by smaller investors, including non-profits and minority and women-owned businesses (MWOBs).
Bids are due from qualified bidders on February 23, 2016, for the SPO offerings and March 8, 2016, for the EXPO offerings. The sales are expected to settle in the second quarter of 2016.
All eligible bidders, including private investors, MWOBs, non-profits and neighborhood advocacy funds are encouraged to bid. The winning bidder will be determined on the basis of economics, subject to meeting Freddie Mac's internal reserve levels. To participate, all potential bidders are required to be approved by Freddie Mac to access the secure data room containing information about the NPLs and to bid on the NPL pool.
Advisors to Freddie Mac on the transaction are Wells Fargo Securities LLC, Credit Suisse Securities LLC and The Williams Capital Group LP.
In March 2015, Freddie Mac's regulator, the Federal Housing Finance Agency, announced enhanced requirements for NPL sales. Additional information about the company's NPL sales is at http://www.freddiemac.com/npl/.
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 the largest source of financing for multifamily housing. Additional information is available at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog