Freddie Mac sells 2,879 delinquent non-performing loans totaling $706.3 million
Nation: The government-sponsored home loan lending corporation Freddie Mac has negotiated the sale of 2,879 delinquent non-performing loans (NPL) from across the nation, totaling $706.3 million in unpaid principal balance.
This sale adds to their first-quarter sales of $4.3 billion in NPLs, as a part of The Federal Housing Finance Agency’s requirements.
According to the press release from Freddie mac:
“Freddie Mac, through its advisors, began marketing the transaction on May 25, 2016, to potential bidders, including minority and women-owned businesses (MWOBs), non-profits, neighborhood advocacy funds and private investors active in the NPL market … All five pools were sold at a weighted average price in the mid-60s as a percent of the total unpaid principal balance … The loans have been delinquent for almost five years, on average.”
Freddie Mac, along with Fannie Mae, have been under federal conservatorship since 2008, when the government stepped in to help assuage fears from the mortgage crisis.
Though the two corporations are no longer at their level of controlling or owning 50 percent of the U.S. mortgage market as they were in 2008, their combined holdings remain one of the most influential factors defining the housing market.
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