Freddie Mac announced recently that it plans to sell $783 million in non-performing loans that are currently held in its investment portfolio as part of its third NPL sale of 2016.
According to the announcement from Freddie Mac, the NPLs are being marketed in seven pools, five of which are Standard Pool Offerings. The remaining two pools are Extended Timeline Pool Offerings, which target participation by smaller investors, including non-profits and minority and women-owned businesses.
Bayview Loan Servicing currently services the loans.
Freddie Mac said that all eligible bidders, including private investors, minority and women-owned businesses, non-profits and neighborhood advocacy funds are encouraged to bid.
According to Freddie Mac, the winning bidder will be determined on the basis of economics, subject to meeting Freddie Mac’s internal reserve levels.
In order to be eligible to participate in the sales process, all potential bidders must be approved Freddie Mac in order to gain access the secure data room containing information about the NPLs, and to bid on the NPL pool.
Advisors to Freddie Mac on the transaction are Bank of America Merrill Lynch and The Williams Capital Group L.P.
According to Freddie Mac, bids are due on June 15, 2016, for the Standard Pool Offerings and June 29, 2016, for the Extended Timeline Pool Offerings.
The sales are expected to settle in August and September 2016, Freddie Mac said.