Freddie Mac announced on Tuesday a Standard Pool Offering (SPO) of deeply delinquent, non-performing residential single-family mortgage loans with approximately $327 million in unpaid principal balance (UPB).
The NPLs in this sale are currently being serviced by JPMorgan Chase, according to Freddie Mac. The loans are deeply delinquent, which means in many cases they are delinquent by two years or more and are likely either in foreclosure or some stage of loss mitigation. This will be Freddie Mac's seventh NPL transaction of 2015. The last one, which was completed on July 28, was comprised of 3,577 deeply delinquent loans with $591 million in UPB. Freddie Mac announced an SPO of Ocwen Financial-serviced NPLs with $1.2 billion in UPB on August 13.
According to Freddie Mac, the SPO of JPMorgan-serviced loans are being marketed as two geographically diversified pools that are offered via auction, with bids due from qualified bidders on October 6. Freddie Mac said the sale is expected to settle in December 2015.
Freddie Mac encourages all eligible bidders are encouraged to bid, including private investors, minority and women-owned businesses (MWOBs), non-profits, and neighborhood advocacy funds. Freddie Mac must approve bidders in order for them to access the data room containing secure information about the NPLs and to bid in the auction.
Winners will be determined on the basis of economics, subject to meeting Freddie Mac's internal reserve levels, according to Freddie Mac. The advisors for this transaction are JPMorgan Securities, Bank of America Merrill Lynch, and First Financial Network, Inc., which is a women-owned business.
Click here for more information on Freddie Mac's NPL sales.