Freddie Mac Sells $5.7 Million in Non-Performing Loans
Rhea-AI Summary
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.
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News Market Reaction – FMCC
On the day this news was published, FMCC declined 4.90%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
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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
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 | |
| Loan Count | 20 |
| BPO-weighted* CLTV (in %) | 49 |
| UPB-weighted CLTV (in %) | 52 |
| Average Months Delinquent | 21 |
| Average Loan Balance (in | 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
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
