2-16-18 2:30 PM EST | Email Article

Freddie Mac Announces First NPL Sale of 2018

$420 Million Transaction Features Four Pools, Including an Extended Timeline Pool Offering Targeting Smaller Investors

MCLEAN, VA--(Marketwired - Feb 16, 2018) - Freddie Mac (OTCQB: FMCC) announced today an approximately $420 million non-performing loan (NPL) transaction, which is an auction of seasoned non-performing residential whole loans held in Freddie Mac's mortgage investment portfolio. The NPLs are currently serviced by Shellpoint Mortgage Servicing.

The NPLs are being marketed via four pools: three Standard Pool Offerings (SPO®) and one Extended Timeline Pool Offering (EXPO®), which targets participation by smaller investors, including non-profits and minority or women-owned businesses (MWOBs).

Bids are due from qualified bidders on March 13, 2018 for the SPO pools, and March 27, 2018 for the EXPO pool. The sales are expected to settle in May 2018.

All eligible bidders, including private investors, MWOBs, non-profits and neighborhood advocacy funds are encouraged to bid. To participate, all potential bidders are required to be approved by Freddie Mac and must successfully complete a qualification package to access the secure data room containing information about the NPLs and to bid on the NPL pool(s). The bids are to be made on an all-or-none basis for any pool separately or for any combination of SPO pools together. The winning bidder will be determined on the basis of the economics of the bids, subject to meeting Freddie Mac's internal reserve levels, at Freddie Mac's sole discretion.

Advisors to Freddie Mac on the transaction are J.P. Morgan Securities LLC, and The Williams Capital Group, L.P., a minority-owned business.

Freddie Mac's Seasoned Loan Offerings are focused on reducing less liquid assets in an economically sensible way from the company's mortgage investments portfolio. This includes sales of NPLs, securitizations of re-performing loans (RPL) and structured RPL transactions. To date, Freddie Mac has sold $7 billion in NPLs, securitized $27 billion in RPLs via fully guaranteed PCs and transacted $9 billion in RPLs via senior/sub securitizations or structured offerings. Requirements guiding the servicing of these transactions are focused on improving borrower outcomes and stabilizing communities. Additional information about the company's seasoned loan offerings is at http://www.freddiemac.com/seasonedloanofferings/index.html.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.

Lisa Gagnon

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