InvestmentsMortgage

Freddie Mac sells $43.7 million in non-performing loans to non-profit

Community Loan Fund of New Jersey buys 189 deeply delinquent loans

As part of its ongoing efforts to sell off some of the deeply delinquent mortgages held in its portfolio, Freddie Mac announced recently that it plans to sell nearly $44 million in non-performing loans to a non-profit buyer.

The sale is part of Freddie Mac's Extended Timeline Pool Offerings, which target minority and women-owned businesses, non-profits, and neighborhood advocacy funds for the purchase of non-performing loans.

In this case, the winning bidder is Community Loan Fund of New Jersey, which agreed to purchase two pools of 189 non-performing loans that total $43.7 million in unpaid principal balance.

According to Freddie Mac, the loans have been delinquent for almost five 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, Freddie Mac said.

Additionally, mortgages that have already been modified and subsequently became delinquent make up approximately 33% of the aggregate pool balance.

Both pools are geographically concentrated in Florida.

Pool #1 contains 110 loans that carry an unpaid principal balance of $26.1 million. The loans are an average of 59 months delinquent, and have an average loan balance of $237,100. The loans also have a varied collateralized loan-to-value ratio range. The loans have a broker price opinion CLTV of 93%.

Pool #2 contains 79 loans that carry an unpaid principal balance of $17.6 million. The loans are an average of 55 months delinquent, and have an average loan balance of $222,500. The loans also have a varied CLTV range. The loans have a broker price opinion CLTV of 92%.

Advisors to Freddie Mac on the transaction were Bank of America Merrill Lynch and The Williams Capital Group.

Bayview Loan Servicing currently services the loans in this sale. According to Freddie Mac, the transaction is expected to settle in September 2016, and servicing will be transferred post-settlement.

Most Popular Articles

HomeStreet Bank fined for kickbacks to real estate agents, homebuilders

The FDIC announced Wednesday that it reached a settlement with HomeStreet Bank after an investigation found that HomeStreet had paid kickbacks to real estate agents and homebuilders in exchange for their mortgage business.

Nov 06, 2019 By

Latest Articles

Zillow experiences growing pains as it moves from listing houses to buying them

In the last few years, Zillow has reshaped its entire business, moving from a real estate listings website to a company that supports the entire homebuying and selling experience. And while the company is seeing positive results in terms of growth and revenue generation, Zillow is also experiencing some serious financial growing pains as it expands.

Nov 11, 2019 By