Freddie Mac announced Thursday that it intends to sell off approximately $292 million in previously modified loans from its investment portfolio.

According to details provided by the government-sponsored enterprise, the pool of loans consists of loans with step-rate modifications (primarily through the Home Affordable Modification Program) and loans modified under GSE proprietary modifications.

The portfolio is made of loans that are re-performing, while some are “moderately delinquent,” Freddie Mac said. Select Portfolio Servicing is currently servicing the loans.

According to Freddie Mac, this loan sale will be structured than some of its other loan sales.

In this deal, the sale will be conducted in two steps. The first step will be the sale of the loans through a “competitive” bidding process, Freddie Mac said. The GSE adds that the sale will be executed on the basis of economics, subject to the buyer meeting Freddie Mac’s internal reserve levels.

According to Freddie Mac, a “key” requirement of this deal is for the purchaser of the loans to be an investor with “substantial experience managing high-risk mortgage loans as well as substantial experience in securitizations.”

That’s because the second part of the deal will involved the securitization of the re-performing loans.

Here’s how Freddie Mac describes that process:

The second step will require the purchaser of the loans to securitize the loans and retain the first loss subordinate tranche. Freddie Mac will guarantee and acquire the senior security issued from such securitization and simultaneously re-securitize such interest. The resulting securities will be the Freddie Mac SLST Guaranteed Securities, Series 2017-1.

Freddie Mac said Wells Fargo Securities, Credit Suisse Securities, and CastleOak Securities are working as advisors on the deal.