Investments

Freddie Mac selling $116 million in non-performing loans to Goldman Sachs subsidiary

Also selling nearly $225 million in NPLs to BlueWater Investment Holdings

MTGLQ Investors, a “significant subsidiary” of Goldman Sachs, is buying more than $116 million in non-performing loans from Freddie Mac, the government-sponsored enterprise announced Monday.

Over the last few years, Goldman Sachs used MTGLQ Investors to buy billions and billions in loans from both of the GSEs.

In this latest sale, MTGLQ Investors is buying two of the three pools in a $341 million sale on non-performing loans from Freddie Mac.

In total, Freddie Mac is selling off 2,150 deeply delinquent non-performing loans. Of those, MTGLQ Investors is buying 665 loans that carry a balance of $116.4 million.

MTGLQ Investors is buying Pools No. 2 and No. 3 in the NPL sale, which Freddie Mac first announced earlier this year.

According to Freddie Mac, Pool No. 2 consists of 138 loans with $29.5 million in UPB. The loans in Pool No. 2 carry an average delinquency of 43 months, an average loan balance of $214,800, and a collateralized loan-to-value range of greater than or equal to 90%.

Additionally, the loans in Pool No. 2 have a broker price opinion-weighted CLTV of 126%. The loans in Pool No. 2 are geographically concentrated in the Chicago area.

Pool No. 3 consists of 527 loans with $86.9 million in UPB. The loans in Pool No. 3 carry an average delinquency of 25 months, an average loan balance of $165,700, and a CLTV range of greater than or equal to 90%.

The loans in Pool No. 3 have a BPO-weighted CLTV of 113%. The loans in Pool No. 3 are spread throughout the country.

The remaining 1,485 loans are being bought by BlueWater Investment Holdings, a private asset management company. Those loans carry an unpaid principal balance of $224.7 million.

The loans in the pool bought by BlueWater carry an average delinquency of 26 months, an average loan balance of $149,500, and a CLTV range of less than 90%.

The loans in the BlueWater pool carry a BPO-weighted CLTV of 68% and are secured by geographically diverse properties.

Overall, the loans in this sale have been delinquent for over two years, on average.

According to Freddie Mac, 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.

As such, mortgages that have already been modified and subsequently became delinquent make up approximately 55% of the aggregate pool balance.

The loans in this sale are currently being serviced by New Penn Financial, d/b/a Shellpoint Mortgage Servicing.

Bidding is still open for the sale’s extended timeline pool offering, which are smaller pools of loans that target participation by smaller investors, including nonprofits and minority or women-owned businesses. Bids for those loans are due on March 27, 2018.

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