Freddie Mac Sells $5.7 Million in Non-Performing Loans

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Freddie Mac announced the sale of 20 non-performing loans totaling $5.7 million to GITSIT Solutions, , as part of the Extended Timeline Pool Offering (EXPO®). The loans are currently serviced by Specialized Loan Servicing and NewRez The sale aims to reduce less-liquid assets and improve borrower outcomes.

Awards EXPO Pool to One Winner

MCLEAN, Va., April 30, 2024 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today announced it sold via auction 20 deeply delinquent non-performing residential first lien loans (NPLs) from its mortgage-related investments portfolio to GITSIT Solutions, LLC. The loans, with a balance of approximately $5.7 million, are currently serviced by Specialized Loan Servicing LLC and NewRez LLC, d/b/a Shellpoint Mortgage Servicing. The sale is part of Freddie Mac’s Extended Timeline Pool Offering (EXPO^®) and the transaction is expected to settle in June 2024. Freddie Mac, through its advisors, began marketing the transaction on March 6, 2024, to potential bidders, including non-profit organizations and Minority, Women, Disabled, LGBTQ+, Veteran or Service-Disabled Veteran-Owned Businesses (MWDOBs), neighborhood advocacy organizations and private investors active in the NPL market.

Given the delinquency status of the loans, the borrowers have likely been evaluated previously for loss mitigation, including modification or other alternatives to foreclosure, or are in foreclosure. Mortgages that were previously modified and subsequently became delinquent comprise approximately 27 percent of the aggregate pool balance. Additionally, purchasers are required to honor the terms of existing loss mitigation agreements and solicit distressed borrowers for additional assistance except in limited cases and ensure all pending loss mitigation actions are completed.

The EXPO pool and winning bidder is summarized below:

Description	EXPO Pool #1
Unpaid Principal Balance	$5.7 million
Loan Count	20
BPO-weighted* CLTV (in %)	49
UPB-weighted CLTV (in %)	52
Average Months Delinquent	21
Average Loan Balance (in $000s)	283
Geographical Distribution	New York
Winning Bidder	GITSIT Solutions, LLC
Cover Bid Price (% of UPB) (second-highest bid price)	Low-Mid 80’s Area

*Broker Price Opinions (BPOs)

Advisors to Freddie Mac on the transaction are BofA Securities, Inc. and First Financial Network, Inc., a woman-owned business.

Freddie Mac’s seasoned loan offerings focus on reducing less-liquid assets in the company’s mortgage-related investments portfolio in an economically sensible way. This includes sales of NPLs, securitizations of re-performing loans (RPLs) and structured RPL transactions. Since 2011, Freddie Mac has sold $10.2 billion of NPLs and securitized approximately $78.3 billion of RPLs consisting of $30.4 billion via fully guaranteed MBS, $35.5 billion via the Seasoned Credit Risk Transfer (SCRT) program, and $12.4 billion via the Seasoned Loans Structured Transaction (SLST) program. Requirements guiding the servicing of these transactions are focused on improving borrower outcomes and stabilizing communities. Additional information about the Freddie Mac’s seasoned loan offerings is available at: http://www.freddiemac.com/seasonedloanofferings/

Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website | Consumers | LinkedIn | Facebook | Instagram | YouTube

MEDIA CONTACT: Fred Solomon
703-903-3861
Frederick_Solomon@freddiemac.com

 

FAQ

What is the total value of the non-performing loans sold by Freddie Mac?

Freddie Mac sold 20 non-performing loans with a total value of $5.7 million.

Who purchased the non-performing loans from Freddie Mac?

GITSIT Solutions, purchased the non-performing loans from Freddie Mac.

What is the expected settlement date for the transaction?

The transaction is expected to settle in June 2024.

How long were the loans delinquent on average?

The average delinquency period for the loans was 21 months.

What is the purpose of Freddie Mac's sales of non-performing loans?

Freddie Mac aims to reduce less-liquid assets and improve borrower outcomes through the sale of non-performing loans.

Who are the advisors to Freddie Mac on this transaction?

BofA Securities, Inc. and First Financial Network, Inc., a woman-owned business, are the advisors to Freddie Mac on this transaction.