Freddie Mac Sells $667 Million NPLs

MCLEAN, VA -- (Marketwired) -- 03/17/17 -- Freddie Mac (OTCQB: FMCC) today announced it sold via auction 3,621 deeply delinquent non-performing loans (NPLs) from its mortgage investments portfolio. The loans, totaling $667 million, are currently serviced by either Nationstar Mortgage LLC or Specialized Loan Servicing LLC. The transaction is expected to settle in May 2017, and servicing will be transferred post-settlement. The sale is part of Freddie Mac's Standard Pool Offerings (SPO®). Freddie Mac, through its advisors, began marketing the transaction on February 16, 2017, to potential bidders, including minority and women-owned businesses (MWOBs), non-profits, neighborhood advocacy funds and private investors active in the NPL market.

The loans were offered as four separate pools of geographically diverse mortgage loans. Investors had the flexibility to bid on each pool individually and/or a combination of pools.

The loans have been delinquent for over two years, on average. Given the deep delinquency status of the loans, the borrowers have likely been evaluated previously for or are already in various stages of loss mitigation, including modification or other alternatives to foreclosure, or are in foreclosure. Mortgages that were previously modified and subsequently became delinquent comprise approximately 50 percent of the aggregate pool balance. The aggregate pool is geographically diverse and has a loan-to-value ratio of approximately 89 percent, based on Broker Price Opinion (BPO).

The pools and winning bidders are summarized below:

----------------------------------------------------------------------------
     Description        Pool #1       Pool #2       Pool #3       Pool #4
----------------------------------------------------------------------------
Unpaid Principal         $203.0        $111.4        $171.2        $181.4
Balance                 million       million       million       million
----------------------------------------------------------------------------
Loan Count               1,171          700           830           920
----------------------------------------------------------------------------
CLTV Range            Less than 90  Less than 90  Greater than  Greater than
                                                  or equal to  or equal  110
                                                  90 and less
                                                    than 110
----------------------------------------------------------------------------
BPO CLTV                   71            69            99           136
----------------------------------------------------------------------------
Average Months             31            20            26            26
Delinquent
----------------------------------------------------------------------------
Average Loan Balance     173.3         159.1         206.3         197.2
($000)
----------------------------------------------------------------------------
Geographical            National      National      National      National
Distribution
----------------------------------------------------------------------------
Winning Bidder          Pretium       Pretium        Upland    Rushmore Loan
                        Mortgage      Mortgage      Mortgage     Management
                         Credit        Credit     Acquisition   Services LLC
                       Partners I    Partners I   Company II,
                          Loan          Loan         LLC
                      Acquisition,  Acquisition,
                          LP             LP
----------------------------------------------------------------------------
Cover Bid Price         Mid $80s     High $80s     High $60s     High $40s
(second-highest bid
price)
----------------------------------------------------------------------------

Advisors to Freddie Mac on the transaction are Wells Fargo Securities, LLC and First Financial Network, Inc., a woman-owned business.

Freddie Mac's Seasoned Loan Offerings are focused on reducing less liquid assets in an economically sensible way from the company's mortgage investments portfolio. This includes sales of NPLs, securitizations of re-performing loans (RPL) and structured RPL transactions. Prior to this trade, Freddie Mac has sold more than $6.6 billion in NPLs, securitized $26 billion in RPLs and transacted $1 billion in structured offerings. Requirements guiding the servicing of these transactions are focused on improving borrower outcomes and stabilizing communities. Additional information about the company's seasoned loan offerings is at http://www.freddiemac.com/seasonedloanofferings/index.html.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.

Source: Freddie Mac

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