1st Freddie Mac Fire Sale Of 2018 Announced. $420 Million Of Non-Performing Loans Up For Auction
The auction will consist of seasoned non-performing loans held in Freddie Mac’s mortgage investment portfolio. Shellpoint Mortgage Servicing is the servicer of the loans.
The Freddie Mac Fire Sale consists of four mortgage pools.
The sale contains three standard pool offerings and one extended timeline pool offering. The later auction targets participation by smaller investors including nonprofits and minority or female-owned businesses.
Freddie Mac announced bids for the standard pools are due from qualified bidders on March 13, 2018. The GSE also announced a deadline of March 27, 2018, for the EXPO pool.
Freddie Mac is also requiring bidders to complete a qualification package in order to bid.
The GSE also stated bids must be made on an all-or-none basis. Bidders can bid on any pool separately or for any combination of pools together. Freddie Mac will determine the winning bidder on the basis of the economics of the bids.
JPMorgan Securities and The Williams Capital Group served as advisors to Freddie Mac. Williams Capital Group is a minority-owned business
Freddie Mac’s focus for these sales is to reduce less-liquid assets from the company’s mortgage investments portfolio. Freddie Mac has also sold a total of $7 billion in non-performing loans and securitized $27 billion in re-performing loans.