June 8, 2016
The Federal Home Loan Mortgage Corporation (Freddie Mac) has sold, via auction, 487 “deeply delinquent” non-performing loans. The loans were serviced by JPMorgan Chase Bank. The transaction is anticipated to close in August 2016 with servicing transferred, post-settlement. The winning bidder was MTGLQ Investors LP.
The loans were delinquent for approximately 3 ½ years, on average. The aggregate pool is geographically diverse, with an average loan-to-value ratio of approximately 91%.
Through the first quarter of 2016, Freddie Mac sold $4.3 billion in non-performing loans as part of its strategy to reduce the less liquid assets in its mortgage investment portfolio.