Freddie Mac on Wednesday announced it had completed an auction of 6 thousand 8 hundred deeply delinquent non-performing single-family residential loans totaling 1 point 4 billion dollars in unpaid principal balance. The loans sold are serviced by Nationstar Mortgage and the sale consisted of seven pools in two transactions: Five Standard Pool Offerings and two Extended Timeline Pool Offerings.
The winner in three of the Standard Pool Offerings was LSF9 Mortgage Holdings, while Rushmore Loan Management Services won the remaining two Standard Pool Offerings. Non-profit Community Loan Fund of New Jersey won both of the smaller Extended Timeline Pool Offerings. Democratic lawmakers and housing advocates have been pressuring the GSEs to sell non-performing loans to non-profits rather than private investors.
Consumers are looking for more access to credit but are having a tougher time getting it compared to six months ago, according to a survey from the New York Fed. Overall credit application rates were higher in February than October, while at the same time showing marginally higher rejection rates for credit cards and less interest in mortgage applications. While respondents reported being more optimistic about credit card applications being approved, they were more pessimistic about getting mortgage approvals.