Freddie Mac Announces $1.3 billion NPL Sale
Freddie Mac (OTCQB: FMCC) announced a $1.3 billion sale of non-performing loans (NPLs) from its mortgage-related investments portfolio. The offering consists of six pools, including four Standard Pool Offerings and two Extended Timeline Pool Offerings, aimed at attracting smaller investors such as MWDOBs. Bidders must be approved by Freddie Mac and complete a qualification package to access bidding information. Since its inception, Freddie Mac has sold $8.7 billion of NPLs and securitized $74.2 billion of re-performing loans (RPLs), contributing to improved borrower outcomes.
- Freddie Mac's $1.3 billion NPL sale enhances liquidity by reducing less-liquid assets.
- The offering targets smaller investors, including non-profits and minority-owned businesses, promoting inclusivity.
- To date, Freddie Mac has successfully sold $8.7 billion in NPLs and secured $74.2 billion in RPLs, indicating robust performance.
- None.
Includes two Extended Timeline Pool Offerings Targeting Smaller Investors
MCLEAN, Va., Sept. 17, 2021 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) announced today an approximate
The NPLs are being marketed via six pools: four Standard Pool Offerings (SPO®) and two Extended Timeline Pool Offerings (EXPO®), which target participation by smaller investors, including non-profits and Minority, Women, Disabled, LGBT, Veteran or Service-Disabled Veteran-Owned Businesses (MWDOBs).
Bids are due from qualified bidders by October 14, 2021 for the SPO pools, and November 16, 2021 for the EXPO pools.
All eligible bidders, including private investors, MWDOBs, non-profits and neighborhood advocacy organizations are encouraged to bid. To participate, all potential bidders must be approved by Freddie Mac and successfully complete a qualification package to access the secure data room containing information about the NPLs and to bid on the NPL pool(s). The bids are to be made on an all-or-none basis for any pool separately or for any combination of SPO pools together. The winning bidder for each pool will be determined on the basis of the economics of the bids, subject to meeting Freddie Mac’s internal reserve levels, at Freddie Mac’s sole discretion.
Advisors to Freddie Mac on the transaction are Citigroup Global Markets Inc. and First Financial Network, Inc., a woman-owned business.
Freddie Mac’s seasoned loan offerings focus on reducing less-liquid assets in the company’s mortgage-related investments portfolio in an economically sensible way. This includes sales of NPLs, securitizations of re-performing loans (RPLs) and structured RPL transactions. To date, Freddie Mac has sold
The financial and other information contained in the documents that may be accessed on this page speaks only as of the date of those documents. The information could be out of date and no longer accurate. Freddie Mac undertakes no obligation, and disclaims any duty, to update any of the information in those documents.
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.
MEDIA CONTACT: Fred Solomon
703-903-3861
Frederick_Solomon@freddiemac.com
FAQ
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